UK Economic Growth At 11-Year High: CBI Survey
A survey of more than 700 UK firms has indicated the strongest rate of economic growth since data was first collected more than a decade ago.
The Confederation of British Industry (CBI) said its poll of 726 companies showed May growth expansion at its best since 2003.
The findings come as a second lobby group, the British Chambers of Commerce (BCC), upped its 2014 growth forecast by a tenth.
The BCC said it now expects growth this year at 3.1% instead of an earlier estimate of 2.8%.
Its forecast for 2015 has been upwardly revised from 2.5% to 2.7%, and it continues to expect 2.5% growth in 2016.
BCC director general John Longworth told Sky News: "The figures show the economy is in good state and growing very rapidly.
"But growth at the moment is based too much on consumer spending and consumer credit.
"We need to rebalance the economy towards investment, infrastructure and exports."
The CBI said data indicates growth continuing to expand in the second quarter, building on gains of 0.8% during the first three months of the year.
It added that May's growth was up significantly in the poll compared to the April figure.
CBI deputy director-general Katja Hall said: "The UK economy is performing strongly thanks to rising business and consumer confidence, better credit conditions at home and improving global economic conditions.
"What's encouraging is that growth is becoming more broad-based, with solid increases in business investment over the past year. This bodes well for the year ahead.
"But there are risks to the UK's outlook from global developments, including the possibility that the situation in Ukraine and Russia could impact on global commodity prices."
Meanwhile, a separate consumer survey by data researcher Markit has highlighted householders' concerns.
It said fears of a rising cost of living, interest rates and energy bills topped the list.
It added that nearly a fifth of mortgagees believed there would be "very significant" impact from rising rates.
The concerns match lenders new protocol prior to accepting mortgage applicants.
Last month the Mortgage Market Review (MMR) was introduced, designed to better calculate applicants' ability to pay if loan rates rise in the future.