"The drivers of growth, which are just now beginning to broaden, will broaden further next year"
-CBI Director-General John Cridland
Confidence among British companies is improving rapidly, indicating that the economy is reviving and gaining pace. The Confederation of British Industry said that the economy is now expected to expand 1% this year and 2% in 2014, the same as it estimated in February, accelerating from a 0.3% growth in the previous year. The report also showed that the BoE is not likely to expand its asset-purchase programme any further. However, they expect that the inflation rate will grow to 3.1% during this quarter, adding more pressure on the policy makers to meet its inflation target of 2%. Another major concern is the manufacturing sector, which according to the report, should be supported by the government by encouraging both lending and investment in the sector.
"In the conversations I have with business leaders, I've been hearing that whilst firms are on a cautious footing, there's a bit more confidence about the economic outlook," CBI Director-General John Cridland said at a press conference in London.
"The drivers of growth, which are just now beginning to broaden, will broaden further next year," Cridland said. "With the year getting off to a positive start, the mood amongst companies growing a little brighter, our outlook remains one of cautious optimism for the U.K. economy."
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