© Reuters. FILE PHOTO: A person walks through the City of London financial district in London, Britain, September 13, 2021. REUTERS/Hannah McKay
LONDON (Reuters) – British businesses gained a small amount of momentum and grew at an above-average pace in the three months to the end of October, despite widespread disruption to supply chains, the Confederation of British Industry (CBI) said on Sunday. The CBI’s monthly growth indicator – which pulls together surveys of output from manufacturers, retailers and other services companies – rose slightly to +29 from +27 in September, after hitting its highest 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. Many British petrol stations ran dry at the start of October, the most visible example of bottlenecks in the economy as it emerges from the COVID-19 pandemic and faces shortages of workers such as tanker drivers and rising energy prices.
Britain’s Office for Budget Responsibility upgraded its growth forecast last week to predict an expansion of 6.5% this year and 6.0% in 2022, as the economy recovers from its historic slump of nearly 10% in 2020. Many investors expect the Bank of England to raise interest rates this week for the first time since the start of the pandemic, although some economists expect it to hold fire until there is clearer news on the health of the job market.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.