U.K. Companies See Faster Growth Before Brexit Slowdown: CBIBy
Manufacturers help private sector grow 8 percent in October
Next 3 months will see growth of 13 percent across the board
U.K. companies expect their expansion to accelerate over the next three months before the fallout from the Brexit vote starts to hit, according to a survey by the Confederation of British Industry.
Recent growth has been led by manufacturing and distribution, with the former benefiting from the pound’s decline, the CBI said in a report published on Sunday. Services remained flat. It sees investment and consumption starting to weaken next year on concern that negotiations to leave the EU will hurt trade and fan inflation.
Economic data has so far defied the bleakest predictions of how the British economy would fare after Brexit. Consumer spending has remained resilient since the June 23 referendum and while the falling pound has increased the cost of imports, exporters have been given a boost. The CBI said it wants the Chancellor of the Exchequer Philip Hammond to support growth in his Nov. 23 speech setting out his priorities.
“The government can help keep the economy firing by pressing ahead with infrastructure commitments across the whole of the U.K. and by promoting innovation in the Autumn Statement,” said Rain Newton-Smith, chief economist at the CBI.