WIREDGOV

The survey of 762 respondents across the distribution, manufacturing and service sectors showed the balance of firms reporting a rise in output at +6%, compared with +13% in the three months to May 2017.

A fall in business volumes in consumer services, unchanged volumes in business and professional services and slower growth in distribution and manufacturing all contributed to the weakening in momentum.

Private sector firms expect growth to pick up over the next three months (+14%).

Rain Newton-Smith, CBI Chief Economist, said:

“Growth has slowed across our surveys for a second successive month and expectations for the quarter ahead have cooled.

"With the economy shifting down a gear, and higher inflation eating into household incomes, it’s vital the Government creates the right environment for businesses to continue contributing to the country’s prosperity.

“We need to fix the fundamentals of our economy by focusing on productivity enhancing measures such as improving educational attainment, infrastructure and innovation while supporting firms exporting overseas.”