Economic prospects pick up

The UK economy is getting back on its feet and showing signs of a modest
recovery in 2006, according to the Ernst & Young ITEM Club.

The economic forecaster is predicting growth of 2.3% in GDP in 2006,
following the 1.7% growth rate in 2005.

Inflation has also dropped back sooner than expected, it added.

Peter Spencer, chief economic advisor to the ITEM club, said, however: ‘We
are certainly not out of the woods yet. Growth is still well below par – just
hitting the EuroZone average – and with consumer spending dropping and the
pressure piling on exports to take up the slack, we could be in for a bumpy

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