# Weak UK consumer spending is denting business mood, says CBI

Business activity across the UK private sector declined in the last three months, a survey has found, as .

The latest growth indicator produced by the Confederation of British Industry (CBI) shows that UK private sector activity fell again in the three months to February, at a faster rate than in the quarter to January.

All sectors reported falling business volumes, the CBI says, pulling its growth index down to -27% in February, from -23% a month earlier.

In a worrying sign, private sector firms also expect another fall in activity over the next three months, .

“There are some glimmers of hope in our latest surveys,” said Alpesh Paleja, the CBI deputy chief economist.

“Growth expectations have become marginally less negative, driven by a predicted return to growth in the manufacturing sector. But overall, the data still paints a picture of a tough operating environment for businesses, with consumer-facing sectors faring particularly badly.”

The CBI hopes the government will usher in measures such as changes to the apprenticeship levy, increased incentives for occupational health, or an overhaul of business rates, to help lift business confidence.

A separate survey from the accountancy network BDO found that medium-sized companies were most concerned about barriers to international expansion and rising workforce costs.

BDO polled 500 business leaders at mid-sized companies with turnovers between £10m and £300m, and found that almost half want better support from the government to begin or continue exporting abroad. This includes broadening the access to UK Export Finance support to the mid-market, new free trade agreements and simpler customs rules to aid the export of products or services overseas.

In January, the EU’s new trade chief said , by letting it join the Pan-Euro-Mediterranean convention. That would create “dynamic alignment” between the UK and EU, potentially helping the UK’s food and farming industry.

A quarter of business leaders polled by BDO cited rising workforce costs, such as national insurance contributions (NICs) and the living wage, as a significant worry.

The government has resisted pressure to ditch .

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