We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

CBI expects subdued growth in 2012

Business group says economy will grow by 0.9 percent

Article comments

Growth will restart in 2012 but will remain subdued, the CBI business lobby warned on Monday.

The group said it expects 0.9 percent GDP growth in 2012, which is down from its 1.2 percent forecast in November. Furthermore, it only expects growth of 2 percent in 2013.

It is optimistic that consumer price index inflation will fall towards the 2.2 percent target levels, relieving some pressure on household incomes.

There was also positive expectations for net trade and business investment, with exports growth of 4.3 percent and 6.4 percent expected in 2012 and 2013 respectively. The CBI forecasts total business investment of 4.3 percent for 2012 and 5.0 percent for next year.

John Cridland, CBI's director-general (pictured), said economic conditions "will continue to be tough", and the recovery will depend on the resolution of the eurozone crisis.

"But some activity has picked-up since before Christmas and the mood among many businesses has improved, with exception of companies serving the UK consumer where business remains flat," he added.

"Although risks remain we expect growth this year, improving modestly in 2013, primarily driven by positive net trade and business investment."



CBI expects subdued growth in 2012
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Unilever reports Q1 sales growth of 3.6%

However, consumer product giant’s turnover hit by 8.9% negative currency impactmore ..

Spirent posts 16% rise in Q1 revenue

Networks testing firm benefiting from 4G rollout in Chinamore ..

Sports Direct posts 10.3% rise in quarterly sales

However, row over pay and investments overshadow sterling performancemore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..


* *