04.11.201702:44:00UTC+00UK Economy Remains Steady, Outlook Weak - CBI

Growth in Britain's private sector was steady in the three months to October after slowing down recently, and the inflation hit to consumers and Brexit concerns for companies indicate that growth will probably remain modest, according to an industry survey.

The Confederation of British Industry's monthly indicator of output for manufacturers, retailers and services companies remained at +11, its joint lowest level since June.

The economy of Britain slowed significantly during the first half of this year, although it slightly accelerated in the third quarter.

Output expectations for the next three months dropped to +12 from +18 in September, the weakest reading since January.

The CBI said it expected growth to remain moderate as inflation weighs on household spending power in late 2017 and early 2018 and uncertainty over Brexit impedes business investment next year.

The Bank of England increased interest rates for the first time in a decade on Thursday as it moved to head off what it sees as the inflationary impact of Brexit, despite saying that the economy will probably remain stuck in a slow gear over the next three years.