The U.K. economy is expected to grow at a faster pace this year as household spending and productivity growth pick up.
The Confederation of British Industry forecast 2.6 percent growth this year, up from the prior estimate of 2.4 percent. Similarly, the outlook for 2016 was raised to 2.8 percent from 2.5 percent.
Rain Newton-Smith, CBI’s director of economics expects strength in growth to continue into next year.
Household spending underpinned by wage growth and low inflation, coupled with business investment would support economic growth, business lobby noted. However, strong pound is hampering competitiveness.
A separate survey conducted by EEF, a manufacturers’ organization and Vodafone UK said half of manufacturers are using innovation to expand into new export markets. Innovation is challenging and a lack of resources reduces chances of success, it said.
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