From The BBC:
UK economy ‘faces tough recovery’
The UK economy has begun to emerge from recession but growth next year will be fragile, a forecast by business group the CBI has warned.It predicts UK GDP will grow by 0.3% between July and September from the previous three months, and will rise by 0.4% between October and December. However, it said a lack of demand meant it was hard to foresee rapid growth. January’s increase in VAT would dampen spending, it warned, while firms would be “cautious” in raising output.
Growth in the three months to the end of September would follow five consecutive quarters of contraction which has seen UK GDP fall by a cumulative 5.5%. CBI director-general Richard Lambert said that the short-term outlook for the UK was “brightening” thanks to the recovering global economy, the weak pound and the government pumping more money into the economy through its quantitative easing programme. There was also likely…