UK races ahead as confidence returns

According to the CBI, the economy is growing at its fastest pace in more than a decade amid rising consumer and business confidence. It said the retail, manufacturing and service sectors registered record growth in May in a sign that the recovery is broadening. Katja Hall, CBI deputy director general, said the strong performance of the UK economy was down to rising confidence, as well as "better credit conditions at home and 'abroad'". However, she said sluggish eurozone growth and rising tensions in Ukraine still posed risks. The CBI's survey of 726 businesses showed 35% of respondents believed activity had increased in the three months to May, up from 25% in April. This was the highest reading since records began in 2003. Meanwhile, the BCC has upgraded its UK growth forecast to 3.1% for 2014, from 2.8%. It now expects the BoE to start raising rates in the first quarter of next year, two quarters earlier than previously forecast.