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LONDON (Reuters) - British businesses predict the strongest rebound in output in more than a year over the next three months, after a weak end to 2019, adding to expectations of a post-election pick-up in the economy, a survey showed on Sunday. The Confederation of British Industry said its monthly output expectations gauge - based on responses to its surveys of manufacturers, retailers and the service sector - rose to +12 in January from +1 in December, its highest since September 2018. But the measure estimating output over the past three months remained very weak at -16, up only a bit from Decembers reading of -20, the weakest since the 2008-09 financial crisis. Its great to see business confidence improve but it remains to be seen whether this will feed through to activity, Rain Newton-Smith, the CBIs chief economist, said. Last month the CBI predicted the economy would grow by 1.2% this year, slowing from 1.3% in 2019. Britain formally left the European Union at 2300 GMT on Friday, starting an 11-month transition period during which Prime Minister Boris Johnson wants to negotiate a trade deal. While Johnson aims to avoid tariffs on goods, businesses that are part of complex cross-European supply chains fear new border checks will make them uncompetitive. The government must work quickly to establish a future relationship with the EU that can deliver prosperity across the whole economy, as well as refocusing its attention on important domestic priorities, Newton-Smith said. (Reporting by David Milliken, editing by Andy Bruce) View comments
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