Member Article

CBI revises economic growth

THE CBI has reportedly downgraded its forecast for UK economic growth in the first quarter of 2011.

The firm has predicated growth of 0.2%, down from 0.3%, as public sector jobs and higher-than-expected inflation slow the recovery.

The CBI also said it does not expect the UK to fall back into recession, and expects growth in the second quarter to rise to 0.4%.

Meanwhile,higher VAT and energy bills will hit consumer spending.

VAT is due to rise from 17.5% to 20% from 4 January, Government job cuts are gathering pace, and higher energy, food and clothing costs are on the way.

This was posted in Bdaily's Members' News section by Ruth Mitchell .