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Vicky Redwood, economist at Capital Economics, warned that the economy "will recover pretty sluggishly over the next couple of years", something that those investing in the stock market may wish to not.
This is despite the fact that new data released this week relating to the CIPS/Markit PMIs "has been pretty positive".
Expansion has been seen in both the service and manufacturing sectors and Ms Redwood said that although this has eased worries that the UK will see a double dip recession this quarter, there is still a risk that a further fall could happen later in the year.
The seasonally-adjusted CIPS/Markit Business Activity Index for the services sector touched a high not seen since January 2007 earlier this week after rising to 58.4 points in February.
Ms Redwood added that Capital Economics sees the economy growing by "about one per cent" in the medium to long term.
Posted by Chris Weaver
