CBI ups growth forecasts
The UK economy's gathering momentum saw the Confederation of British Industry (CBI) today raise its growth forecasts for 2013 and 2014, but the business group warned that Britain is still falling short of a "sustainable recovery".
The employers' body is forecasting growth of 1.2% this year – above its May forecasts of 1% – and a stronger 2.3% in 2014, after a better-than-expected second quarter and a rise in confidence across the services, construction and manufacturing sectors.
But efforts to rebalance the economy towards exports and investment are still struggling, according to CBI director-general John Cridland, who said trade is making a limited contribution.
He added: "The economy has started to gain momentum, and confidence is picking up, but it's still early days. We need to see a full-blown rebalancing of our economy, with stronger business investment and trade, before we can call a sustainable recovery. We hope that will emerge in 2014."