The CBI and the Chambers of Commerce have announced that the UK economy is in good health. The CBI reported that growth reached a new record level in May 2014.
The British Chamber of Commerce updated its growth forecast for the year from 2.8% to 3.1%, and if all goes to plan would be the highest rate since the crisis of pre 2007. The Office for budget responsibility had forecast an original 2.7% which has now been surpassed considerably.
The CBI report is fantastic news for British businesses and the high street but is it due purely to consumer spending? It seems to be the case.
John Longworth from the BCC quotes “Our forecast confirms that Britain is leading, rather than following, other major economies when it comes to short-term growth, which is great news. But make no mistake – we still have a lot of work to do.”
He also noted that the UK was “overly reliant on consumer spending” as a driver of growth.
The CBI report also adds that the pace of growth will remain above average for the rest of the year due to stronger economic performance including retail and professional and consumer services performing very well indeed due to increased confidence in the British economy and easier access to credit which have forced the new economic positivity.
So all in all some good news to end this week on, retail figures are up, consumers are consistently spending again, the economy is booming at a ten year high. Alternative lines of business credit are helping business owners supply consumer demand where the high street banks are still failing. To see how such funding can help your business click here.