UK private sector activity declined sharply in the three months to June, led by consumer services sector; manufacturing was the only sector to see a solid rise in output: CBI

Sample article from our Housing & Economy

LONDON , June 27, 2022 (press release) –

Private sector growth slowed sharply in the three months to June (+5%, from +23), according to the CBI’s latest Growth Indicator, marking the slowest rise in activity since April 2021.

The slowdown was broad-based across sectors, with consumer services seeing the biggest hit (-41%), marking the sharpest fall experienced by the sector since February 2021. Growth also slowed across business & professional services (+10%) and distribution (+9%). The former was the weakest increase in activity in four months, and the latter the weakest since April 2021. The only sector to see a solid rise in output was manufacturing (+25%), though growth here also eased on the ten-month high seen in May (+30%).

Looking ahead, private sector activity is expected to be broadly flat in the next three months (-3%) - the weakest forward-looking expectations since February 2021. 

Consumer services volumes are set for another tough quarter (-43%), while business & professional services is predicted to stagnate (+2%) and distribution sales are expected to fall (-7%). Manufacturing output is expected to continue growing solidly (+20%), albeit at a slower pace than in the last three months. 

Alpesh Paleja, CBI Lead Economist, said: 

“With the post-pandemic recovery severely challenged by continually strong cost pressures, private sector activity is grinding to a halt. Firms across all sectors are being hit, but consumer-facing companies are faring worst, as consumers face the worst cost-of-living crunch in decades.

“With household spending hit, rapid action needs to be taken to boost business investment and stave off the worrying spectre of recession. Policies like introducing a permanent successor to the super-deduction could help bolster confidence and catalyse vital capital spending. 

“Longer-term, we need to look at post-Brexit regulatory reforms to support growth, innovation and sustainability, while enhancing UK competitiveness. Government and business also need to be better prepared to look globally for new avenues of growth, while demand falters at home.”

The CBI Growth Indicator is a composite measure of activity, based on responses to CBI surveys. In total, 457 firms responded between 25 May and 14 June 2022.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Dan Rivard
Dan Rivard
- VP Market Development -

We offer built-to-order housing & economy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.