According to the employer’s organisation CBI, the British economy is beginning to see the right kind of growth.
John Cridland, the head of CBI, said that there was no reliance on debt or a housing bubble. Instead the recovery was hinging on net trade and business investment.
Cridland still had a warning for the future though. With next year’s general election looming, it was possible political uncertainty could become a problem as campaigns get into full swing.
According to him, “There is no doubt that business leaders are concerned about political uncertainty as we enter a lengthy election campaign.” He added, “This could be a real mood killer when business leaders are faced with making big investment decisions in the months ahead.”
The CBI predicts that the UK will benefit from an increase in export growth as European and broader global economies start to improve. They also think that business investment growth will rise as its fastest rate in over 5 years thanks to low borrowing costs and improved business confidence.
This report comes as the British Retail Consortium said total sales were on the up by 5.4%. This is the strongest it’s been since April 2011. It was also pointed out that peak was due to Easter, so excluding that would make it the highest rate of total sales since March 2010.