UK recovery gathers pace: CBI figures

Growth in 2014 expected to be faster than any time since 2003

The UK economy continued to expand through April and the CBI is predicting growth rates to rise even further next quarter.

The CBI Growth Indicator takes the temperature of the UK economy quarterly, and according to its survey of 675 cross-industry respondents, growth expectations rose by 25 per cent this month – up from 19 per cent in March.

Katja Hall, chief policy director at CBI, said firms surveyed were optimistic that growth will pick up again over the next quarter as well. "These latest growth figures, and the strong expectations for the next quarter, provide further encouraging signs of increasing vigour and confidence across the UK economy.

"While consumer spending accounted for the lion's share of GDP growth last year, there are firm indications of growth becoming more broad-based. It's good to see that business investment has consistently contributed to quarterly growth since 2013," she said.

Hall (pictured) claimed that economic output rose from an eight-month low recorded the previous month, and is well above average. The UK's economic recovery is steadily advancing, with growth strengthening across retail and services in particular. Manufacturing output was also solid.

"We expect growth to strengthen in 2014, underpinned partly by rising business and consumer confidence and supportive monetary conditions. Productivity and earnings are also expected to start recovering this year," Hall added.

In the May-July quarter, growth is expected to be "exceptionally strong and broad-based" – and stronger than any time since the CBI began producing its growth indicators in 2003.