Economic growth will be slow according to CBI
July 4, 2009 by admin
Filed under News, News-Banking
According to the Confederation of British Industry the growth of the UK economy still has a long way to go, and progress is likely to be slow. The comments from the CBI came amidst a variety of other industry reports that showed encouraging figures with regards to output and growth over April and May, and showed a rise in consumer confidence, as well as increased interest in the housing market from first time buyers.
The figures that have been released by various agencies have resulted in speculation and predictions about the up and coming recovery of the UK economy, with some saying that the recession is coming to an end.
However, this is not the view that is being taken by the CBI, which thinks that there is a long way to go yet, and these views have also been expressed by the Bank of England governor, Mervyn King, recently, as well as by a number of other industry experts.
CBI officials have said that the UK economy is likely to go through a period of stabilisation soon, and in many areas this stabilisation has already started.
However, the CBI also added: ‘The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour. For positive growth to return, lenders need to feel more confident so that credit can start flowing again.’
It is also thought that whilst there has been a slowdown in unemployment increases the full effect of job losses from the end of last year and the start of this have not yet been fully felt. It is thought that unemployment levels could continue to soar by the end of this year.
