Retailers, factories and service firms have all reported enhanced growth from October to December the Confederation of British Industry (CBI) has said.

The UK economy grew by a strong 0.4 per cent in the third quarter and has left the country in a strong position for GDP growth to reach as much as 1.8 per cent over 2017 as a whole.

This is a small change from 1.9 per cent in 2016 with fears of an economic slow down diminishing.

The CBI report showed a majority of businesses boasting an “above normal” level of output - the strongest figure recorded since 2015. Only 19 per cent believe they are experiencing below average levels. 

Professional services companies felt a recovery after witnessing a period of flat output. Whilst the customer services industry were assisted by a rebound after poor trading conditions in November.

Sales of cars were far from strong, however, retail sales adjusted and wholesale demand rose.

Factories’ output increased above the sector’s long-term trend. 

Anna Leach, head of economic intelligence at the CBI said: “Private sector firms are enjoying healthy activity levels as we approach the year end.”

Exports growth is increasing as well as the combination of a lower pound and stronger global growth have pushed up the demand for British firms’ goods and services. 

The Bank of England (BoE) has stated the UK has entered in to new markets with Australia and India -two countries outside of the EU which have been reported to both be experiencing strong economic growth. 

UK exports are meeting growing demand in the US and the East. The BoE report said: “Export demand strength was relatively widespread across sectors such as construction materials, automotive and chemicals.”