PracticeConsultingCBI forecasts recovery for 2002

CBI forecasts recovery for 2002

The Confederation of British Industry has predicted that the UK's economy will bounce back next year, thereby avoiding full-scale recession.

In its quarterly forecast, the business group said the economy will grow by a lower-that-expected 2% this year as a result of the global slowdown. But growth should increase next year to 2.5%, according to the CBI’s forecast.

‘Next year’s economic recovery will be driven by home demand led by the consumer and supported by higher government spending,’ said CBI associate director of economics Sudhir Junankar.

‘But the current imbalances in the economy will persist next year with manufacturing output up only modestly and trade still a significant drag on economic growth,’ he added.

And CBI director general Digby Jones used the announcement to again hit out at the government’s climate change levy. He said the levy was adding to costs, hindering job creation and not helping recovery.

Furthermore, the CBI said demand for UK manufacturers’ goods, both at home and abroad, had weakened substantially since the start of this year. Total order books are at their lowest level for nearly two and a half years and output is set to fall, the body warned.

The news follows a PricewaterhouseCoopers survey earlier this week which said the slowdown in the manufacturing sector had potentially devastating implications for the Midlands’ economy. The Big Five firm said urgent action was needed to protect the region from serious decline.

Links

PwC’s tips to stave off the recession

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer