UK economic growth still in the doldrums in February
LONDON – Growth in Britain’s private sector remained subdued last month after falling to its slowest rate in nearly three years in January, a survey showed on Tuesday, adding to signs of a slowing in the country’s economy.
The Confederation of British Industry said its monthly growth indicator — based on surveys of manufacturers, retailers and services — edged up to +8 from +6 in January but was below its levels throughout all of last year and 2014.
“The British economy has made a slow start to the year, and growth has remained in the doldrums in February,” Rain Newton-Smith, the CBI’s director of economics, said.
“With global risks increasing this year following the volatility seen in financial markets, businesses will be keeping a close eye on any possible impact on domestic activity.”
Britain has grown more strongly than almost all other rich economies over the past couple of years but growth slowed towards the end of 2015.
As well as the slowdown in the global economy, the CBI said uncertainty over Britain’s June 23 referendum on its membership of the European Union could hurt growth in 2016 although investment intentions by businesses were holding up.
The CBI survey found output expectations for the next three months rose to +19 in February from +13 in January. -Reuters