British economy to grow more than expected

Britain’s economy will grow more strongly than previously thought this year and in 2016, an industry group said yesterday, as it also brought forward its prediction for the timing of Britain’s first rate increase in over seven years.

The UK economy will expand by 2.6% in 2015 and 2.8% in 2016, the Confederation of British Industry said, up from forecasts of 2.4% and 2.5% it made in June.

The confederation said a pick-up in household spending and investment, would more than offset a drag from foreign trade.