1
Mar
UK economy's outlook improving, surveys suggest
Surveys from two industry bodies suggest there is growing
optimism about the recovery of the UK economy.
The employers' organisation the CBI said service sector firms
saw business stabilise in the last three months.
The manufacturers' lobby group the EEF also said its members
were seeing improved levels of business.
Revised GDP figures released last week showed the UK economy
grew by 0.3% in the last three months of 2009, having previously
contracted for six quarters.
The CBI's findings were somewhat split, with an improvement in
the consumer sector offset by a poorer picture from business
services.
In consumer services, which include hotels and travel, business
was at its best level for more than two years.
Both organisations, though, suggest there are still problem
areas in the economy.
Job prospects
Ian McCafferty, the CBI's chief economic adviser, said:
"Overall, these figures are consistent with our view that the
economy is recovering slowly, but that we will have to wait a while
before growth picks up."
The CBI said the outlook for employment was weak. Both the
professional services and consumer sectors cut staff numbers.
That, though, was offset by the EEF report, which said
employment in manufacturing was picking up.
Electronics was one of the strongest performing sectors in
recent months, while the motor industry - helped by the car
scrappage scheme - also saw an increase in output.
The EEF said all regions of the country saw better conditions,
with the biggest swings in the East of England and Yorkshire and
Humberside.
It cautioned that a number of risks lay ahead, including
uncertainty over public finances and continuing issues over access
to finance.
source: www.bbc.co.uk/news
Monday 1st March 2010