Economic growth expectations are the highest for a decade

20poundnotesThe number of companies expecting economic growth in the next quarter is at its highest level for more than a decade, while the balance of companies experiencing growth grew in April.

The CBI Growth Indicator found a balance of +25% of 675 companies across retail, services and manufacturing grew in April, compared with a balance of +18% in March.

Firms are optimistic that growth will pick up again over the next quarter, with the expectations balance at a record +42% – the highest since the survey began in 2003.

'These latest growth figures, and the strong expectations for the next quarter, provide further encouraging signs of increasing vigour and confidence across the UK economy. While consumer spending accounted for the lion's share of GDP growth last year, there are firm indications of growth becoming more broad-based. It's good to see that business investment has consistently contributed to quarterly growth since 2013', says Katja Hall, CBI chief policy director.

'We expect growth to strengthen in 2014, underpinned partly by rising business and consumer confidence and supportive monetary conditions. Productivity and earnings are also expected to start recovering this year.'