UK economy 'set for Q2 boost'

The second quarter of 2015 will see the UK's steady rate of economic growth start to build momentum, according to a new report.

The CBI's growth indicator puts the rise in the nation's gross domestic product at 0.7 per cent for the first quarter of the year, following a 0.6 per cent increase between October and the end of last year.

This is despite manufacturers reporting a significant fall in orders from overseas, and the strength of the pound.

Many firms are confident they will have a more productive and profitable quarter two, yet a year ago their expectations were much higher, the CBI survey of 764 businesses suggests.

The growth indicator plots the difference between the percentage of firms reporting their performance has improved in the previous three months and those that have seen a decline.

Last month, the difference was 18 per cent, compared to 19 per cent in February.

The best-performing businesses tended to be in the travel, leisure, consumer services and distribution sectors, the CBI said.

Copyright Press Association 2015