According to reports last Friday, Britain’s economic prospects are brighter than it has ever been for over ten years and consumers’ optimism has increased significantly since nine years ago.
There is a rapid economic increase in the business sector, according to a survey conducted by CBI.
The business lobby group conducted a survey last May on retailers, manufacturers, and companies in the service sector.
The survey shows a very fast paced economic growth, something that was seen 11 years ago.
CBI deputy director-general Katja Hall attributed the strong economic performance of UK to the growing business, increasing consumer confidence, improving home credit conditions, and the developing economic conditions of the world.
The growth is encompassing with solid business investment growth in the past year, which is very encouraging because it promises a good year ahead, said Hall.
The bright economic outlook shown by the business community is very timely as the optimism among consumers is significantly growing due to the positive economic conditions among British households.
Last May, for the first time since 2005, GfK’s consumer confidence index got out of the negative reading, which is at 0.
Meanwhile, the British Chamber of Commerce released an economic growth forecast at 3.1 percent this year from last year’s 2.8 percent. This figure indicates that Britain is leading other economies when it comes to short-term growth.
This is considered as the strongest growth rate since 2007.
However, this optimism was somehow dampened by the BCC who warned that there could be a high point for the economy this 2014 when interest rates in household finances will start to increase.
BCC director general John Longworth urged the Bank of England not to increase interest rates as much as possible and make sure that the interest rate increases in the future would be implemented gradually.