UK private sector activity down for second straight survey in three months to January as distribution activity grew faster than previous rolling quarter, manufacturing output eased; consumer services activity fell for first time since three months to June

Sample article from our Housing & Economy

LONDON , January 31, 2022 (press release) –

Private sector growth eased for the second consecutive survey in the three months to January (balance of +12% from +21% in three months to December). This is the slowest rate of growth since the three months to April 2021, according to the CBI’s latest Growth Indicator.

Only the distribution sector saw faster growth than the previous rolling quarter (+38% from +21%). Growth in manufacturing output (+14% from +29%) and business & professional services volumes (+9% from +16%) eased, while consumer services activity fell for the first time since the three months to June 2021 (-23% from +23% in December).

Private sector activity is expected to grow at a similarly modest pace in the next three months (+10%), marking the lowest expectations for growth since the quarter to February 2021.

Looking ahead, manufacturers (+23%) and business & professional services firms (+15%) expect a faster rate of growth in the next three months. Distribution firms expect growth to ease slightly (+33%), while consumer services activity is expected to fall at an even faster rate (-53%).

Alpesh Paleja, CBI Lead Economist, said:

“Private sector growth weakened substantially across most sectors in the quarter to January, and expectations for the three months ahead have softened notably.

“Consumer services have borne the brunt of Plan B restrictions and general Omicron caution, with activity here shrinking sharply. Consumer-facing firms will also have to content with a deepening squeeze on household budgets, as rising energy prices and, more broadly, higher inflation start to bite. Expanding the Warm Home Discount and cutting VAT from consumer energy bills for 2022 can help ease pressure on the most vulnerable.

“To ensure businesses are well placed to support the recovery and compete globally, maintaining and expanding their access to the Recovery Loan Scheme is essential, as is compensation for Energy Intensive Industries for indirect emissions costs.”

* 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.

More from our Housing & Economy Coverage
See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

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.