CBI revises UK growth forecast

<p>The UK economy is forecast to grow at 1.2 per cent in 2013.</p>

The Confederation of British Industry (CBI) has announced this morning (August 19th) that it has upwardly revised its growth expectations for the UK economy in 2013.

It was revealed by the CBI that it now expects growth of 1.2 per cent for the year as a whole, which is slightly ahead of its previous forecast of one per cent.

Data recently showed the economy expanded by 0.6 per cent in the second quarter of the year, slightly up on the 0.3 per cent figure recorded in the first three months of 2013.

Director-general of the CBI John Cridland accepted that it is still "early days" for the economy, but said growth and confidence are both "picking up".

He said: "We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery."

Figures from the Office for National Statistics recently showed unemployment dropped slightly in June, with 4,000 fewer people out of work compared to the previous month.

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