CBI predicts UK growth slowdown in H2

The CBI business lobby group has predicted UK growth will slow in the second half of the year as productivity weakness and slower wage growth bites.

The economy grew by 0.8% in each of the first two quarters, but the CBI predicts a decline to 0.7% in the third quarter and 0.6% in the fourth. Its growth forecasts for 2014 and 2015 are unchanged at 3% and 2.7%. Rising business and consumer confidence, improving credit conditions and reductions in uncertainty over demand have been strong growth drivers, the group said. However, after the recent period of acceleration, it predicts growth will moderate in the second half of this year to 0.7% (Q3) and 0.6% (Q4), as the initial positive impact of those factors wears off. This easing o...