Improved North Sea oil and gas production helped the UK economy grow in the three months to July, but the strength of the pound remained a drag on exporters, according to a survey.
The CBI’s latest growth indicator comes days after official figures showed growth bounced back in the second quarter with a reading of 0.7% after a slow start to 2015.
Gross domestic product (GDP) figures from the Office for National Statistics (ONS) on Tuesday showed growth had improved from 0.4% in the first quarter to 0.7% in the April-June period.
Budget tax breaks to support the industry helped North Sea oil and gas improve production.
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A balance of firms reporting growth in the past three months minus those seeing declines gave a reading of plus 20%, up from plus 14% in June.
The rebound was largely due to a faster pace of growth in the business and professional services sector, said the CBI, while expansion for manufacturers and retailers was moderate.
Growth is expected to strengthen further in the coming three months, with a balance of 27%, according to the poll of 736 businesses.
Anna Leach, CBI head of economic analysis, said: “A healthy pace of growth puts the economy on a firm footing going into the third quarter and it looks set to stay that way through the rest of this year, as low oil prices and inflation help support spending.
To read more at: https://www.energyvoice.com/other-news/83856/oil-and-gas-helps-accelerate-uk-growth/
The CBI’s latest growth indicator comes days after official figures showed growth bounced back in the second quarter with a reading of 0.7% after a slow start to 2015.
Gross domestic product (GDP) figures from the Office for National Statistics (ONS) on Tuesday showed growth had improved from 0.4% in the first quarter to 0.7% in the April-June period.
Budget tax breaks to support the industry helped North Sea oil and gas improve production.
RELATED ARTICLES
UK growth bounces back in wake of North Sea tax breaks
Manufacturing boosted by oil prices
Scottish economy continues recovery despite oil dip
Uncertainty over oil causes drop in new orders at service firms
Saudis pump record oil as OPEC sees stronger demand in 2016
A balance of firms reporting growth in the past three months minus those seeing declines gave a reading of plus 20%, up from plus 14% in June.
The rebound was largely due to a faster pace of growth in the business and professional services sector, said the CBI, while expansion for manufacturers and retailers was moderate.
Growth is expected to strengthen further in the coming three months, with a balance of 27%, according to the poll of 736 businesses.
Anna Leach, CBI head of economic analysis, said: “A healthy pace of growth puts the economy on a firm footing going into the third quarter and it looks set to stay that way through the rest of this year, as low oil prices and inflation help support spending.
To read more at: https://www.energyvoice.com/other-news/83856/oil-and-gas-helps-accelerate-uk-growth/