Pick-up in growth in final quarter

BUSINESS growth picked up at its fastest pace since 2015 in the final months of 2017, reinforcing hopes that the economy is recovering.

Factories, services firms and retailers all reported improved growth in the three months to December, the Confederation of British Industry (CBI) said.

It comes after the economy grew by an unexpectedly strong 0.4pc in the third quarter and leaves the UK in line for GDP growth of as much as 1.8pc over 2017 as a whole – barely changed from 1.9pc in 2016 – defying fears of a slowdown.

All sectors expanded in the CBI study, with the proportion of businesses reporting “above normal” levels of output outweighing those reporting sub-par levels by a margin of 19pc – the strongest figure since December 2015.

In the dominant services sector, business and professional services companies reported a recovery after a previous period of flat output, while those serving customers also benefited from a rebound after gloomy trading conditions in November.

Retail sales stabilised and wholesale demand increased, though sales of cars struggled.

Meanwhile factories reported output growth well above the sector’s long-term trend.