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CBI says economy continues to recover
THE UK's economic growth has slowed but remains strong, a report has said.
The Confederation of British Industry (CBI) says the economy slowed in March to an eight-month low after hitting record levels in February.
However, despite the decrease, the CBI says growth remains strong and above average as the UK's economy continues to recover.
The outlook for the next three months is bright, with growth expected to accelerate driven by strength in the service sector.
The CBIs findings were based on a survey of 622 business across the manufacturing, retail and service industries.
Bosses said the majority of the growth reduction was down to the consumer services, business, professional services and retail sectors.
Anna Leach, CBI head of economic analysis, said: “Although growth has slowed from record levels last month, it remains strong and firms are optimistic it will pick up again in the next quarter.
“As this year progresses, we expect further increases in business and consumer confidence. “Productivity and earnings should also start to recover.”
However, she said problems in the Eurozone could pose a rise to UK growth.
She added: “Our direct trade and financial links with the Ukraine and Russia are relatively small, but the crisis could have potential implications for global commodity prices, which may impact UK inflation.”