The latest Confederation of British Industry (CBI) growth indicator survey has revealed that economic growth within the private sector gained considerable momentum during the three months to December.
The survey, which details the economic activity of the retail, business, consumer services and manufacturing industries, suggests that private sector economic growth picked up following November’s weaker figures.
The balance of firms reporting rising output in December was +20%, which is significantly higher than the previous month’s figure of +13%.
This latest rise is also above the long-run average of +5%.
Business and professional services experienced a particularly strong year end. Manufacturers, however, are reportedly still facing difficulties.
The CBI survey, which received 766 responses, also revealed that the economy is expected to continue to grow over the next three months.
CBI Director General, Carolyn Fairbairn, stated: ‘The UK economy has finished the year strongly, with business services acting as a lightning rod for growth.
‘Ultimately, employers want relief from the cumulative burden that could harm the UK’s competitiveness, as the combined effect of the introduction of the apprenticeship levy and the National Living Wage begins to bite against the backdrop of unreformed business rates and the administrative challenge of pensions enrolment.’
