The economy is growing – but at slower rate than 2015
BRITISH business growth rebounded in the three months to August shaking off some of the European Union referendum blues, but expansion is still far below the rate seen last year.
The latest survey from the CBI will fuel the simmering row over how well the economy is bearing up after the Brexit vote amid a flurry of conflicting data.
The CBI’s growth indicator stood at +8 per cent, slightly up from the +5 per cent figure recorded in July.
The stronger figures will be taken as a sign that the economy remains resilient despite the June vote to leave the EU.
But the index remains at low levels compared to the double-digit positive numbers seen throughout 2015.
The CBI figures come hot on the heels of the latest Purchasing Managers Index figures for manufacturing, issued by research group IHS Markit last week. These showed a sudden recovery at factories following the sharp slump seen after the Brexit vote.
The PMI construction figures on Friday showed a rebound from the July doldrums, although they indicated that the building industry is still shrinking.
The third key PMI measure – covering the services sector and regarded as the most important indicator – will be issued tomorrow.
Before the referendum the Treasury had warned that an Out vote could mean the economy shrinks by 0.1 per cent in the following three months.
Patrick Minford, professor of applied economics at Cardiff Business School and one of the Economists for Brexit, said the Treasury forecasts were ‘completely dead and buried’. He added: ‘They ought to have the most red faces and be eating the
NESPRESSO, Nestlé’s coffee capsule and machine brand promoted by actor George Clooney, has announced plans to open four new ‘boutiques’ across the UK by December, with another four in the pipeline.
The retail expansion forms part of the brand’s ambition of opening outlets across the country so that no one is more than an hour’s drive away from one.
In 2015, Nespresso operated a global retail network of more than 450 exclusive boutiques – retail stores where customers can taste and learn about the ‘Grand Crus’. So far it has 14 in the UK.
Francisco Nogueira, Nespresso UK & Ireland managing director, said: ‘Through these four new boutiques we will be able to reach many customers, particularly in areas of the country such as Leeds and Bristol where we haven’t previously had a presence.
‘Our growth in the UK over the past few years has been phenomenal, with four boutiques opening in 2015 and eight planned for this year, we are quickly developing our portfolio across the country.’
The four confirmed boutique locations are in Bristol, Leeds, Sheffield and London.
In June, the company launched its first Cafe Nespresso in Cheapside in the City of London. The pilot cafe sells coffee from the Nespresso Grands Crus range as well as food. It also features a Nespresso Cube, a new automated self-service machine that prepares orders.
Headquartered in Lausanne, Switzerland, Nespresso operates in 64 countries and has more than 12,000 employees.