LONDON: British businesses reported a pickup in growth in the three months to December but they expect a slowdown in early 2018 as high inflation takes its toll on households, the Confederation of British Industry said on Thursday.
The CBI’s monthly growth indicator — based on surveys of how companies’ output has changed over the previous three months — jumped to +19 in December from +6 in November, which was the joint lowest level in more than a year.
Growth was broad-based across sectors, the CBI said.
By contrast, the forward-looking component of the CBI growth survey fell to +4, its lowest level since immediately after the Brexit vote in June 2016, from +6 in November.
“Persistent cost pressures will ensure inflation remains at a high level, perpetuating the squeeze on household spending, particularly impacting consumer-facing firms and retailers,” Anna Leach, the CBI’s head of economic intelligence, said.
British inflation hit its highest level in nearly six years in November when it rose to 3.1 percent, pushed up in large part by the fall in the value of the pound after voters decided to take the country out of the EU.
Wages have been growing more slowly than prices and official data released last week showed households increased their spending at the slowest pace since 2012 in the July-September period.
The pinch on consumer spending and uncertainty for many companies about what Brexit means for them has weighed on Britain’s overall economy which has grown more slowly than its peers in Europe this year.
Many forecasters expect growth will remain sluggish in 2018.
The CBI growth indicator is based on a combination of its surveys of manufacturers, retail and distribution companies and business and professional services firms, which it says covers about three quarters of the private-sector economy.
UK firms see fourth-quarter pickup, but expect slowdown in early 2018
UK firms see fourth-quarter pickup, but expect slowdown in early 2018
Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn
RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.
On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.
The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.
According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.
The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.
The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.
The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.
Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.
The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.
Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.
Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.
The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.
Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.
