CBI Adds to Economic Gloom by Cutting Growth Forecasts

By Philip Thornton Economics Correspondent | The Independent (London, England), May 27, 2005 | Go to article overview
Save to active project

CBI Adds to Economic Gloom by Cutting Growth Forecasts


Philip Thornton Economics Correspondent, The Independent (London, England)


The CBI, the UK's largest business lobby group, slashed its forecasts for economic growth over the coming two years and changed its view on interest rates to say the next move would be down.

It said the economy would grow by 2.5 per cent this year slowing to 2.3 per cent in 2006, down from 2.7 and 2.6 per cent respectively in its February forecast.

'The central message is that the economic outlook has weakened since February,' said John Cridland, its deputy director-general. 'The UK economy has undoubtedly slowed and consumer spending is undoubtedly down as interest rate rises are having an impact.'

It cut its forecasts for consumer spending to 2 per cent this year from its previous estimate of 2.2 per cent and last year's 'bumper' rise of 3.3 per cent.

Doug Godden, its head of economic analysis, said: 'There is a possibility of seeing a more abrupt slowdown in consumer spending mainly related to feelings about the housing market.

'If we were to see a decline [in house prices], that would lead to consumers becoming much less willing and less able to borrow and we would then see consumer spending more constrained.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

CBI Adds to Economic Gloom by Cutting Growth Forecasts
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?