03 Aug 2022
Private sector activity is at a standstill as rising prices continue to take their toll, the Confederation of British Industry (CBI) has warned.
According to the CBI's latest Growth Indicator activity remained sluggish in the three months to July.
The CBI said that sectoral performance was mixed, with activity across business and professional services growing at a quicker pace than the previous month. However, consumer services activity continued to fall while growth in manufacturing output slowed on the previous month.
Alpesh Paleja, CBI Lead Economist, said: 'As firms and consumers continue to be buffeted by rising prices, private sector activity has slowed to a near standstill. With the announcement of a further rise in the energy price cap now just weeks away, consumer-facing firms will also be bracing for an even tighter squeeze on household incomes in the months ahead.
'Consumer spending isn't going to restart the engine on growth this time. Boosting business investment will help to fill the void left by households, but incentives need to be bold, or they won't scratch the surface.'