The UK economy is in good health, according to a report produced by two major lobby groups – the Confederation of British Industry and the British Chambers of Commerce.
According to the CBI, growth rates recorded in May were at a record high – outperforming all months since data was first collected in 2003.
Meanwhile, the BCC has altered its growth forecast for 2014 to 3.1%, up from 2.8% and if achieved, would be the highest rate since before the financial crisis in 2007.
This is also considerably above the forecast of 2.7% from the Office for Budget Responsibility, showcasing the widespread positivity currently surrounding the UK economy.
Encouraging growth figures for 2014
Growth in the first three months of 2014 stood at 0.8%, and the CBI figures suggest continued strong performance throughout the second quarter.
Several sectors showed signs of strong growth, including retail sales as well as professional and consumer services, while manufacturing output also continued to increase.
However, it is important to remember that the growth stems from a very low base, so the country is still widely regarded as being in the early stages of recovery.
Increasing confidence, easier access to credit and better global conditions were all linked to the improvement by CBI deputy director-general Katja Hall.
The need to remain cautious
She added that global developments could also impact upon the recovery though, highlighting the escalating situation in Ukraine as a particular point of concern.
With the eurozone crisis still far from being fully resolved, the UK continues to be exposed to a prolonged period of subdued activity in the region,” she explained.
The BCC’s director general John Longworth also expressed concerns over the reliance on consumer spending to drive growth.
“Our forecast confirms that Britain is leading, rather than following, other major economies when it comes to short-term growth, which is great news,” he said.
“But make no mistake – we still have a lot of work to do.”
Remaining watchful of finances
It is important to remain watchful under current market conditions, and that means managing spending and being careful with finances.
Financial management is extremely important, so keeping spending in check with a prepaid card is a great way of ensuring that you don’t spend more than you would like.
A prepaid card limits spending to the amount on the card at any given moment and is not directly linked to a bank account, making funds safer.
The cards can easily be topped up or replaced if required, while accounts can be checked regularly online if needed.