Economic growth is on course to return to pre-Covid levels by the end of the year, a leading business group is predicting.
But the CBI warned of a “two-speed recovery”, with sectors having different levels of recovery.
Its research among almost 600 firms suggested that in the three months to June, private sector activity grew at the fastest pace for six years.
Manufacturing and distribution activity grew at record rates while growth in business and professional services remained strong, but consumer services activity continued to fall, said the CBI.
Alpesh Paleja, CBI lead economist, said: “With much of the economy having now reopened, we’re seeing a boost in activity across the economy.
“With robust expectations for the months ahead, and real positivity in terms of vaccine uptake, CBI forecasts show that UK GDP is on course to return to pre-Covid levels by the end of the year.
“Where we need to remain vigilant is the emergence of a two-speed recovery.”
The CBI added that sectors such as manufacturing, distribution and business and professional services looked well on the road to recovery, while firms in industries such as travel needed greater support to prevent the loss of skilled jobs.
