The economy will achieve modest growth this year, avoiding a double-dip recession, the latest economic forecast from the CBI suggests.
It expects growth this year of 0.9% and 2% in 2013 with manufacturers starting to buy new equipment and entering new export markets. However, unemployment will remain high and living standards will be squeezed.
Consumers and households face a subdued outlook due to, it adds.
CBI director general John Cridland said: “Economic conditions will continue to be tough, especially in the first half of the year and the UK recovery will depend on the successful resolution of the eurozone crisis.
“The pressure on household incomes will also ease slightly in the second half of this year as inflation falls, resulting in a slight increase in consumer spending.
“But weak wage growth and high levels of unemployment will continue to be a brake on household spending.”
