In their latest economic forecast, the CBI have lowered their estimates of British growth from 1.2 percent predicted in November 2011 to 0.9 percent, forecasting a fragile 0.2 percent growth during the first quarter of 2012.
The CBI say the latest figures are in response to the economic contraction recorded during the last three months of 2011; with CBI’s general director, John Cridland, saying: “Economic conditions will continue to be tough, especially in the first half of the year, and the UK recovery will depend on the successful resolution of the Eurozone crisis.
“Although risks remain we expect growth this year, improving modestly in 2013, primarily driven by positive net trade and business investment.
“The pressure on household incomes will also ease slightly in the second half of this year as inflation falls, resulting in a slight increase in consumer spending. But weak wage growth and high levels of unemployment will continue to be a brake on household spending.”
The CBI have predicted that during the next twelve months growth will pick up, forecasting a 0.6 percent increase in the third quarter and a 0.5 percent growth in the final quarter; whilst also predicted a two percent growth during 2013.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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