Outlook for UK economy 'remains subdued' as bosses battle cost hikes

Private sector bosses expect business to slow over the next three months

Private sector bosses are predicting activity to shrink again over the next three months when a fresh bout of inflation is expected to compound cost pressures hoisted upon them at last year’s Autumn Budget.

According to t he Confederation for British Industry’s (CBI) Growth Indicator, more firms expect trading conditions to worsen in the three months to November than to improve, extending a run of negative predictions that began after the government’s maiden fiscal event last October.

The lobby group said negative sentiment could be found across the UK economy. Bosses in services, distribution and manufacturing – the three main sectors polled for the survey – all predicted slower business over the next quarter.