| The CBI has cut its prediction for the growth of the UK economy in 2008 from 2% to 1.8%.
"High commodity prices are adding to inflationary pressures and significantly squeezing household incomes. And some households are feeling a chill from the credit freeze, with lending conditions becoming tighter."
Ian McCafferty, the CBI'S chief economic adviser, says: "The UK economy is being buffeted by some strong headwinds, with the prolonged troubles in the financial markets for a bumpier ride both this year and next."
Richard Lambert, the CBI'S director general, adds: "Having enjoyed two years of strong growth, we are now living in uncertain times. We are facing a financial shock on a scale not experienced in recent times, which is coming on top of already slower growth."
In his recent Budget speech, Chancellor Alastair Darling predicted GDP growth of between 2.25% and 2.75%.
Author: Chris Crawford is MD of BD Recruitment in Manchester, UK
http://www.bdrecruitment.com |
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