Daily Management Review

Stronger-Than-Average Growth For UK Business, Says CBI Report


Stronger-Than-Average Growth For UK Business, Says CBI Report
Even though the United Kingdom economy was hit by wide-ranging disruption to supply chains, the economy managed to clock a small degree of momentum, growing at more than average speed in the three months to the end of October, according to a report by the Confederation of British Industry (CBI) on Sunday.
There was a slight rise into +29 from +27 n the month of September in the CBI's monthly growth indicator - which combines surveys of output from manufacturers, retailers, and other services companies, following the indicator reaching its highest point since 2014 in August at +34.  
"Given the headwinds business has faced, achieving above-average growth for the past six months shows real resilience in the UK economy," CBI lead economist Alpesh Paleja said.
At the beginning of October, many petrol stations in Britain did not have fuel to sell which has become the discernable picture of the bottlenecks in the British economy as it stages a rebound from the Covid-19 pandemic hit but is facing severe shortages of critical workers such as drivers for tankers and peppered by rising energy prices.
The disruption to supply chains by Britain's Office for Budget Responsibility was upped by it last week and forecast the economy to expand at 6.5 per cent for the current year and at 6.0 per cent next year as the economy rebounds from the historic contraction of almost 10 per cent in 2020.  
The Bank of England is expected by many investors to raise interest rates later this week for the first since the pandemic began, even though there is a section of economists who expect the bank to hold the rates till such time that a clearer picture emerges on the condition of the job market of the economy.