Private sector set for summertime boom
The private sector is set for a booming few months, with growth predicted to be at its highest since June 2015, according to growth estimates from the CBI.
Private sector activity broadly is expected to grow 32 per cent in the next three months, with growth predictions for business and professional services firms (+48%) at their strongest in seven years.
Manufacturers too are in for a boom, with growth projected to be up 36 per cent in the next three months, and growth in distribution sales is set for a rise of 15 per cent, the CBI said.
Meanwhile consumer services firms have tempered their expectations relative to last month, and now expect activity to remain flat in the next three months (+1% from +10%).
Private sector activity was flat during the last three months, as the UK grappled with lockdowns before eventually easing up on restrictions in the last month.
CBI lead economist Alpesh Paleja said: “Economic growth appears to be poised for lift-off over the summer. But this is a recovery that will be felt differently across sectors: while the outlook has improved considerably across the business & professional services and manufacturing sectors, consumer-facing firms seem to anticipate trouble in getting off the ground.
“The government can ensure reopening is a success by continuing to support businesses getting back on their feet and making the transition to a post-Covid world a smooth one – particularly for those firms that are likely to continue struggling.”