UK economic growth “held steady” during the first three months of 2015 and is expected to continue gathering momentum.

According to the business lobby organisation the Confederation of British Industry (CBI), the outlook for 2015 looks encouraging.

Its latest Growth Indicator stated the strongest growth in March was seen from the distribution sector – retail, wholesale and motor – as well as the consumer sector. Businesses expect this growth to strengthen over the coming months, but the CBI warns the strong pound may have an adverse effect.

The report surveys 764 businesses across a range of business sectors.

Katja Hall, CBI deputy director general, said: “The outlook for 2015 looks encouraging. Our surveys show it’s been a solid start to the year with the prospect of stronger growth to come. The benefits of lower oil prices should be increasingly felt; with cheaper petrol boosting households’ incomes and spending power, and cutting costs for many businesses.

“The main risk to the UK economy comes from the Eurozone, with continuing wrangling over Greece’s bailout package stoking uncertainty. Plus, many businesses will also have to contend with a stronger pound weighing down on already weak export growth.”