Thursday, June 17, 2021

Economic growth takes off in quarter to May – CBI

Economic growth has taken off in the quarter to may, according to the latest ‘Growth Indicator’ from the CBI.

Indeed, in the three months to May, private sector activity across the economy grew at its fastest pace since August 2015 – with a balance of +30% up from just +1% last month.

Business & professional services activity grew at a survey record pace (+50% from +5%), while distribution sales (+35% from -8%) and manufacturing output (+18% from +3%) increased at the fastest rates since August 2018 and December 2018 respectively.

Consumer services volumes fell (-19% from -2%), largely driven by travel and leisure firms, many of which were still unable to open when our May surveys were in field.

Expectations are that private sector growth will accelerate even further in the coming three months (+42%). If these expectations were to be met, it would be the fastest rate of economic growth on record (since October 2003).

All sectors anticipate strong growth over this period – business & professional services (+52%), consumer services (+33%), manufacturers (+33%) and distribution firms (+37%).

The composite measure featured responses from 552 firms between 27 April and 17 May.

“As the country slowly but surely reopens, the economy has really taken off. Most sectors have seen a real uplift in activity in recent months and believe that the outlook for the summer is strong,” said CBI Lead Economist, Alpesh Paleja.

“The same cannot be said for consumer services during this time, which is understandable given continued restrictions. All eyes will be on the Government’s decision on step 4 of the roadmap, to further help the likes of hospitality, leisure and tourism make the most of summer.

“As and when restrictions lift further, we shouldn’t lose sight of how fragile the situation will remain for some businesses, and the Government will need to keep a watching brief of what support may need to continue.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.







Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close