Financial News: UK Private Sector Expects Activity To Decline: CBI

UK Private Sector Expects Activity To Decline: CBI

01/27/2025 - 07:41:00 (RTTNews)

(RTTNews) - UK private sector firms forecast another sharp fall in activity over the next three months, latest Growth Indicator from the Confederation of British Industry showed Monday.

The pessimism was widespread across the private sector. In the service sector, a net 20 percent of respondents forecast a fall in activity and a 19 percent of manufacturers expect a decline in output over three months to April. The disappointing outlook came as private sector activity fell again in the three months to January. The balance stood at -23 percent compared to -21 percent in the three months to December. Activity has been flat or falling since August 2022, the survey showed.

"After a grim lead-up to Christmas, the New Year hasn't brought any sense of renewal, with businesses still expecting a significant fall in activity," CBI Interim Deputy Chief Economist Alpesh Paleja said.

"Alongside plans to cut staff and raise prices further, this risks an increasingly awkward trade-off for policymakers," said Paleja.

Paleja said there is an urgent need to get momentum back into the economy. The government can help shift the UK's economic narrative with more determined focus on measures that could drive growth.

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