UK firms and consumers upbeat on the economy

Chris Papadopoullos
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Consumer confidence is running high across much of the UK, meaning retailers can expect many Brits to embrace the summer sales
The UK’S economic growth prospects got a boost today as more British businesses said they are seeing output grow, while consumers are more confident on their finances.

More firms registered output growth in three months to July, according to a survey of firms published by the Confederation of British Industry (CBI).

The percentage of firms that said output rose minus the percentage that said it dropped came in at 20 per cent – a climb on the 14 per cent that was reported in June.

Consumer confidence is also high with the confidence index published by market researchers GFK scoring four in July.

It marks a slight drop compared with June’s score of seven, but the index is at historically high levels with last month’s score marking the highest this century.

“With wage inflation outstripping price inflation, and good news about improving growth and employment prospects, our expectations to next summer remain stable and considerably more optimistic than during July last year,” said Joe Staton, head of market dynamics at GFK. “Overall, despite this month’s dip, the underlying message is strong.”

The CBI said it put the economy on a firm footing going forward.

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