Private sector set to rebound as economy reopens
The private sector is set to see a boom as the economy reopens this summer, with growth anticipated to hit its highest level in six years. The Confederation of British Industry (CBI) expects private sector activity to grow 32% in the next three months, a rate that marks its strongest growth prediction since June 2015. Growth in business and professional services firms is expected to hit 48%, the steepest increase since April 2014, while manufacturers could see growth of 36%. Consumer services firms expect activity to remain flat in the next three months, increasing 1% from 10%. Alpesh Paleja, lead economist at the CBI, said: “Economic growth appears to be poised for lift-off over the summer. But this is a recovery that will be felt differently across sectors.” CBI analysis shows that private sector activity rose 24% in April.