The economic recovery in the UK will speed up in the next two years, according to a new report by the Confederation of British Industry (CBI).
It raised its growth forecasts to 1.4 per cent for 2013 – up from 1.2 per cent in its August prediction – and 2.4 per cent expansion of the economy next year.
The CBI also announced it is forecasting 2.6 per cent economic growth for the UK in 2015, which the body noted increases in business income will contribute to.
Director-general of the CBI John Cridland stated that the UK is now set for "fair" growth" after coming through the recession.
He said: "The recovery that started in the service sector has fanned out to manufacturing and construction, and is shaping up to be more broad-based."
Mr Cridland added the recovery is not going to be "spectacular", but will be "slow and steady".
The changes to the CBI's growth forecast comes shortly after the International Monetary Fund confirmed it now expects the UK's growth for the year to be 1.4 per cent.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.