Slow recovery predicted for UK economy

The UK looks set to continue along a slow road to fiscal recovery, according to a leading business association.

A report from the Confederation of British Industry (CBI) predicted that recovery in the UK will "be weak at 0.3 per cent" in the first two quarters of 2010 as consumer confidence in spending rises gently.

This figure is likely to increase as the global recovery takes hold and the pound's weak exchange rate encourages investment from abroad.

John Cridland, CBI deputy director-general, said: "Although the first few months of 2010 will be difficult, growth will gradually pick up and increasing confidence and demand will lead the UK into a more positive 2011. Consumer spending looks to be slightly more resilient than we first thought, and a weaker pound will help to support export growth."

The CBI's report of a gradual increase in wealth coincides with UK citizens beginning to pay off the shared national debt which stands at around £31,000 for each British household, according to a report carried out by Halifax for the BBC.

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Posted by Sarah Pitton