The Confederation of British Industry raised its forecasts for U.K. economic growth this year and next as business and consumer confidence strengthens and credit conditions improve.
The business lobby’s quarterly forecasts see the economy expanding 1.2 percent this year and 2.3 percent in 2014. That’s up from 1 percent and 2 percent projected in May. The London-based group also said today that unemployment — which the Bank of England has set as the key indicator for its guidance on policy — will fall to 7.6 percent next year after staying at its current 7.8 percent in 2013.
“The economy has started to gain momentum and confidence is picking up, but it’s still early days,” said CBI Director-General John Cridland. “We need to see a full-blown rebalancing of our economy, with stronger business investment and trade, before we can call a sustainable recovery.”