Private sector firms expect business activity to weaken further in the first quarter of the new year, extending a run of negative forecasts that began in the run-up to the November budget.
The CBI’s latest Growth Indicator marks “a continuation of the headwinds that have plagued businesses over the past 12 months” said CBI Deputy economist Alpesh Paella, adding that strong cost pressures continue to squeeze margins.
“Uncertainty ahead of November’s Budget also put the brakes on key spending decisions and big projects, choking up pipelines of work. The latest Growth Indicator suggests that the alleviation of this uncertainty hasn’t materially boosted activity.”
The survey coincided with data showing the UK economy grew 0.1% in July to September, in line with the initial estimate.
Figures released by the Office for National Statistics on Monday show that the second quarter growth was revised down to 0.2% from 0.3%.
ONS director of economic statistics Liz McKeown said: “Today’s updated figures paint the same picture as our initial estimate, with growth continuing to slow in the third quarter.
“Growth in services were partially offset by falls in production, with a marked drop in car manufacturing.
“Our latest figures show the household saving ratio, whilst falling in recent periods, remains high by historic standards.”
The FTSE 100 was down 0.3% in early trade.
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