Economic recovery on the way, says CBI

Wednesday 13 February 2013

City of London

Organic growth is beginning to return to the UK economy, the Confederation of British Industry (CBI) has claimed.

The business organisation says modest gross domestic product (GDP) growth is expected in 2013, with the pace picking up in 2014.

According to the CBI's latest forecast, growth of 1.0 per cent will be seen this year, down from the previous forecast of 1.4 per cent.

This reflects the weaker-than-expected growth rate in the fourth quarter of 2012 (-0.3 per cent).

Quarter-on-quarter growth is expected to be marginally positive (0.3 per cent) in the first quarter of the year, and stay between 0.3-0.4 per cent for the rest of 2013.

In 2014, the CBI is expecting growth of two per cent, unchanged from its November forecast. Quarter-on-quarter growth is expected to be around 0.5-0.6 per cent.

John Cridland, director-general at the CBI, said there are clear signs that firms offering the right products into the right markets are growing sales and expanding.

“Recent business surveys also give grounds for cautious optimism about our forward prospects," he noted.

“Looking ahead, external risks to the outlook in the Eurozone and further afield are likely to keep growth at home and abroad in check."

Posted by Steve Williams