The UK economy is continuing to expand, according to the Confederation of British Industry (CBI).
In its monthly survey, the business lobby group noted that the UK economy grew by 0.7 per cent in the three months to March, bettering the 0.6 per cent rise during the previous quarter. CBI members believe that this latest result will help to provide some momentum going into the next quarter.
However, there are concerns that ongoing issues in the eurozone and the terms of Greece's bailout package could affect any future growth. The CBI maintained that the survey, which assesses the performance of 764 private firms from a range of sectors, provides some cause for optimism for the coming months.
Katja Hall, CBI deputy director general, said: "The outlook for 2015 looks encouraging. Our surveys show it’s been a solid start to the year with the prospect of stronger growth to come.
"The benefits of lower oil prices should be increasingly felt; with cheaper petrol boosting households’ incomes and spending power, and cutting costs for many businesses."
The CBI's survey revealed an overall increase of 18 per cent for the three months to March which is stated was "almost unchanged from the three months to February (19 per cent)".
The CBI warned in March that the general election could provide some significant upheaval in the business sector. The British public will vote for their next prime minister and government on May 7th but the CBI stated that the UK economy could see a "power vacuum" should no party win outright in the election.
Recent polls suggest that most likely outcome is another hung parliament with two parties teaming up in a coalition. The CBI has stressed the importance of a clear plan and highlighted the five days it took the Conservatives and Liberal Democrats to a form a government in 2010.
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