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Business News

Britain's economy 'growing at fastest pace since 2007' crash, says CBI


Britain's economic output grew at its fastest pace in January since September 2007, the Confederation of British Industry said today

The output growth balance rose to +30 in the three months to January from +26 in the three months to December- the strongest since the financial crisis started.

Katja Hall, chief policy director at the CBI said: "A picture is unfolding of a real upsurge in output across much of the UK economy."

But warned that businesses need to do more to help the recovery.

She added: "We certainly need companies investing more and creating a bigger footprint in fast-growing markets, and while some risks remain, we expect the economy to continue to strengthen through 2014."

Official gross domestic product numbers due at 9.30 am are expected to show the economy grew 0.7 per cent in the fourth quarter, compared with 0.8 per cent in the third quarter. This represents an annual expansion of 2.8 per cent- one of the fastest among advanced economies- and equates to overall gross domestic product growth of 1.9 per cent in 2013.

Last week, the International Monetary Fund upgraded the UK's growth forecast to 2.4 per cent from 1.9 per cent- beating all other nations- in a fresh boost for George Osborne.

In November, the Bank of England forecast growth of 0.9 per cent in the last three months of 2013, taking full-year growth to 1.6 per cent from the 1.4 per cent forecast in August, with Mark Carney announcing the UK's economic recovery had "finally taken hold".