The UK’s economic growth hit a record high in May, with a new CBI survey showing its highest reading since data began in 2003.
The CBI’s growth indicator, questioning 726 respondents across the manufacturing, retail and service sectors, registered record high growth in business activity with a balance of +35 per cent, rising from +25 the previous month.
The indicator suggests the UK economy has continued to perform strongly going into the second quarter of 2014, with the pace of growth predicted to remain firmly above average for the coming quarter.
Manufacturing output remained steady throughout the period, continuing at the same growth levels experienced in the previous two months.
Katja Hall, the CBI deputy director-general, said: “The UK economy is performing strongly thanks to rising business and consumer confidence, better credit conditions at home and improving global economic conditions.
“What’s encouraging is that growth is becoming more broad-based, with solid increases in business investment over the past year. This bodes well for the year ahead.
Ms Hall did warn of risks to the UK from the development of factors abroad.
“But there are risks to the UK’s outlook from global developments, including the possibility that the situation in Ukraine and Russia could impact on global commodity prices,” she said.
“And with the Eurozone crisis still far from being fully resolved, the UK continues to be exposed to a prolonged period of subdued activity in the region.”