CBI forecasts that the economy will ‘shift down a gear’

Here’s what they said

The CBI has forecast that there will be 1.6 per cent growth for this year and 1.4 per cent for 2018 after a stronger and expected growth from the last six months of 2016.

However, they have warned business investment will drop in 2018 and salaries will struggle match inflation.

The CBI has said household spending will be around 1.7 per cent for this year and salaries will grow by 2.4 per cent and 2.8 per cent for 2018.

The CBI director general, Carolyn Fairbairn said the economic growth will be “steady but subdued” and the economy will “shift down a gear.”

“While the country’s exporters should emerge as a real catalyst of growth, rising inflation and stubbornly low wage growth mean that people are already starting to feel the pinch.

“Tighter purse strings mean slower household spending growth and uncertainty is likely to weigh on the minds of those making major business decisions.”

She added: “Above all, the new Government has the opportunity to signal loudly and clearly that Britain is a great place to do business, relentlessly focusing on investing in infrastructure, innovation and skills nationwide, while delivering a sensible and competitive tax and regulatory environment.”

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