Good news: CBI upgrades its economic forecast for the UK

Some (rare) positive news for Britain

The CBI has raised it growth forecast for the economy this year from 2.5% predicted in November, to 2.7%.

The business body said the combination of low inflation and improved employment would mean households would be spending again – giving the economy a boost.

For businesses, a drop in the oil price had meant they had more to spend, the CBI said, leading to a 5.8% predicted rise in business investment.

“While lower oil prices are keeping costs down for businesses and consumers, the North Sea oil companies are suffering, harming jobs and investment in the industry,” said Katja Hall, CBI deputy director-general.

“Now is not the time for complacency, but falling unemployment coupled with improving wage growth and rock bottom inflation should mean that people see more money in their pockets,” she added.

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