CBI Claims UK Economy growth ‘slowest since 2013’

According to the Confederation of British Industry (CBI), UK GDP grew at its slowest rate since mid-2013 in the three months to January of this year.

Last week, the CBI’s extensive survey of retailers, manufacturers and the services sector revealed a balance of just 6% of firms reporting an increase in business.

Official figures put forward by the CBI said UK growth was at 0.5% in the last quarter of 2015 – representative of the lowest rise in GDP in the last three years.

Output from professional services firms slowed the most, according to the CBI Growth Indicator, and future estimations pointed towards only “modest” growth for the next three months.

Rain Newton-Smith, the CBI’s director of economics has described the UK economy as having had “a tough start to the year”.

Ms Newton-Smith said: “Manufacturing and business and professional services have struggled to make a mark, but a healthier picture can be seen in the household-focused consumer services and retail sectors.”

Recent reports have suggested that the Bank of England will likely cut its economic growth forecasts this week to around 2.3% for 2016, compared with the 2.5% reported back in November.

The central bank will publicise its latest inflation report on Thursday.

It is expected that the Bank of England will also announce plans to keep interest rates unchanged, amid anxieties about global economic instability.

Despite the CBI’s recent discoveries, a Treasury spokesperson has said that even with “turbulence in the global economy, Britain is pushing ahead and continues to grow steadily.”