The economy in the UK grew at its slowest rate since the middle of 2013 in the last quarter (to January), according to reports.

A recent survey of retailers, manufacturing companies and the service sector highlighted approximately 6{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}  increased business, the worst since May 2013.

The economy has had a “tough start to the year”, said Rain Newton-Smith, the CBI’s director of economics.

Recent official figures last week put UK growth at 1/2 {06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the last quarter of 2015, the slowest for three years.

Ms Newton-Smith said: “Manufacturing and business and professional services have struggled to make a mark, but a healthier picture can be seen in the household-focused consumer services and retail sectors.”

Professional services firms – such as the telecoms industry, computing and legal services – slowed down the most, according to the CBI Growth Indicator.

Reports now suggest the Bank of England will consequently reduce UK economic growth forecasts to approximately 2.3{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} for 2016, compared with 2.5{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in November.

The central bank will release its latest inflation report on Thursday, when it will also keep interest rates unchanged amid concerns about global economic volatility.

A Treasury spokesperson said: “Despite turbulence in the global economy, Britain is pushing ahead and continues to grow steadily.”

 

Source:  BBC Business News