UK economy is in good health

According to two major business lobby groups, the CBI and the British Chambers of Commerce (BCC), the UK economy is in good health.

The CBI report that in May growth reached a record high, marking the best reading since it began gathering data in 2003.

The BCC also upgraded its 2014 growth forecast 2.8% to 3.1%, which if achieved, would be the highest rate since pre-crisis 2007.

That figure is well above the 2.7% forecast by the government’s independent fiscal watchdog, the OBR (Office for Budget Responsibility).

Latest official figures showed that the UK economy grew by 0.8% in the first three months of 2014.

The CBI’s growth report suggests the UK economy has continued to perform strongly in the second quarter of this year.

Sectors including retail sales and professional and consumer services did well in the three months to May, while manufacturing output continued to grow at a “solid pace”.

The BCC’s director, John Longworth, said: “Our forecast confirms that Britain is leading, rather than following, other major economies when it comes to short-term growth, which is great news.

“But make no mistake – we still have a lot of work to do.”

He went on to say that the UK was “overly reliant on consumer spending” as a driver of growth.