Growth in the first quarter of 2011 will be lower than expected, the Confederation of British Industry (CBI) has predicted.
The business group said that the UK economy would grow by just 0.2 per cent in the first three months of the year compared to the fourth quarter of 2010.
Overall growth next year will stand at two per cent, while the forecast for 2012 is 2.4 per cent expansion.
This could inspire people to invest in the near future as they may receive higher returns compared to the last couple of years.
However, Ian McCafferty, chief economic adviser at the CBI, said that the pace of recovery has been strong over the past 12 months but this is expected to slow.
"The big early kicker to growth from the turn in the inventory cycle has already passed and we are now starting to feel the impact of lower government spending. As a result, quarterly growth at the start of 2011 is likely to be very sluggish, although we do expect the recovery itself to stay on track," he added.
CBI revises down growth forecast
CBI revises down growth forecast
Thu, 23 Dec 2010
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