Business growth will grind to a halt in coming months as consumers rein in spending, CBI warns
Business growth is set to grind to a halt in the coming months as consumers rein in spending to face the cost of living crisis.
The latest Confederation of British Industry member survey found that the private sector is already treading water with no improvement predicted.
Dark days: Latest Confederation of British Industry member survey found private sector is already treading water, with no forecast of improvement
The suggested reactions have been mixed. Business and professional services activity grew at a faster pace than the previous month. But consumer services activity continued to decline.
Consumer spending will not restart the growth engine this time around, said CBI chief economist Alpesh Paleja.
“With a further hike in the energy price cap now only weeks away, consumer-oriented companies will also be bracing for even tighter pressure on household incomes in the coming months.”
But she welcomed the recent discussion on the economy, saying: “It was encouraging to see both prime ministerial candidates and the main opposition party putting the economy at the center of political debate.”