03 Jul 2023
Activity stabilised across the private sector in June, after falling for ten consecutive rolling quarters, according to the Confederation of British Industry's (CBI) Growth Indicator.
Activity for June was +0%, up from -10% in May and is set to grow marginally over the next three months.
Services recorded a mild increase in business volumes for the first time since July 2022. However, manufacturing and distribution both experienced mild contractions, though at a slower pace than in May.
Activity is expected to grow by +4% in the next three months, reflecting a pick-up in most sectors.
Alpesh Paleja, CBI Lead Economist, said: 'Our latest surveys point to continued resilience in the private sector. Activity appears to be gradually gaining momentum, despite persistent cost pressures, more restrictive financial conditions, and a tight labour market. But at best, growth is still only very sluggish.
'The CBI's latest economic forecast suggests that 2023 will be another tough year for both businesses and households, before a more meaningful pick-up in growth next year.
'However, our forecast also continues to flag longer-term weakness in the UK economy, particularly in productivity and business investment. Making our business environment more attractive to firms at home and abroad should be front of mind at present, with a particular focus on boosting confidence to invest and decarbonise.'