The Confederation of British Industry's latest Growth Indicator indicates a bleak outlook for the private sector, anticipating a -22% decrease in activity over the next three months. This sentiment is echoed across various sectors, with significant declines expected in services (-20%), distribution sales (-30%), and manufacturing output (-19%). Despite a slight improvement in manufacturing expectations since December, overall activity has been stagnant or declining since August 2022. The report highlights an urgent need for measures to stimulate economic growth as businesses navigate challenging market conditions and consumer caution.
"After a grim lead-up to Christmas, the New Year hasn't brought any sense of renewal, with businesses still expecting a significant fall in activity."
"Alongside plans to cut staff and raise prices further, this risks an increasingly awkward trade-off for policymakers. Companies are hit by lacklustre demand and caution among consumers."
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