CBI revises growth forecast
Employers’ body, the Confederation of British Industry (CBI), yesterday delivered an upbeat assessment of Britain’s economic growth forecast for 2004.
The normally cautious CBI projected a 2.8 per cent increase in GDP next year, up sharply on the previous prediction of 2.4 per cent.
Chancellor of the Exchequer Gordon Brown in his April budget said the UK economy would grow between 2-2.5 per cent.
The CBI saw good news for manufacturing in particular, as its Industrial Trends report saw significant improvement for 2003 in the sector.
In its latest quarterly report on the economy, the CBI reported “signs of encouragement” in the manufacturing sector.
In November, after a two-month slump in order books, 62 per cent of producers said they received stable or rising order books, up from the year-low of 54 per cent in October.
Douglas Godden, head of economic analysis at the CBI, said: “Manufacturers’ orders books are now a little fuller than earlier in the year, justifying the improvement in sentiment picked up in the October survey.”
CBI chief economist Ian McCafferty said: “We can now be confident the UK is on the road to economic recovery. The international background in particular is a lot brighter.”
But Liberal Democrat trade and industry spokesman Malcolm Bruce said there was no room for complacency,
He said: “Manufacturers still require a breather from the tax complications that are holding them back and the red tape that is taking up their energy.
“The record trade deficits show that manufacturers still have a mountain to climb and they are barely in the foothills at the moment.”
837 firms responded to the CBI’s Industrial Trends survey between October 22 and November 7.
