The Confederation of British Industry (CBI) downgraded its growth forecast for UK economy but says employers remain optimistic. Whereas the accountancy firm BDO’s latest survey of UK manufacturing firms paints a more negative picture. The CBI predicts growth of 2.4% and 2.5% in 2015 and 2016 respectively, down from 2.7% and 2.6% – forecasts made in February. This is an expected decision since other organisations including the Bank of England revised its growth forecasts downwards recently.
“The recovery has built up a good head of steam,” Mr Cridland said. “Our members are feeling more upbeat than some of the recent official numbers suggest.”
Should the Government be persuaded to slow its public spending cuts?
Mr Cridland said: “We don’t want the government to ease off on austerity. We want the government to continue to tackle the deficit in the public finances but to do so in an intelligent way.” BDO suggested a strong pound and a weak eurozone economy (the UK’s largest trading partner) had hit export orders.