In separate reports published today the Confederation of British Industry and British Chamber of Commerce have both noted some good-time sentiment amongst their respective members.
The UK economy is growing at its fastest pace in more than a decade amid rising consumer and business confidence according to the CBI survey which said the retail, manufacturing and service sectors registered record growth in May in a sign that the recovery is broadening
The CBI’s survey of 726 businesses showed a balance of 35% of respondents believed activity had increased in the three months to May, up from 25% in April. This was the highest reading since records began in 2003.
Meanwhile, the BCC upgraded its growth forecast for 2014 from 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 OBR ( Office for Budget Responsibility) the government’s independent fiscal watchdog.
Well that’s it then, buy loads of pounds and sit back! But as we’ve said before here a lot of the good sentiment is already factored in, and the negative impact of the impending interest rate rises can not be underestimated.
Hey, it always takes two to make a market but I most certainly won’t be swallowing the UK happy pill just yet.
