News article

"Slack" will remain in economy over coming months

//
Economic forecasts have improved, but there is still going to be a lot of "slack" in the economy over the coming months, it has been claimed.

Jonathan Loynes, an analyst from Capital Economics, said that growth will be seen towards the end of the year, something that may interest those thinking of investing in the stock market.

He noted that the first quarter of 2009 was the "absolute low point" for negative growth in the UK.

But Capital Economics has pushed its forecasts up in recent weeks as more positive data emerges, he revealed.

However, Mr Loynes added: "I think the key point is that the growth rate is going to be pretty modest."

It comes following a report from the Confederation of British Industry, which predicted that growth of 0.1 per cent and 0.3 per cent will be recorded in the first two quarters of 2010.

Director general Richard Lambert warned analysts not to get too "carried away" with positive figures that have been published recently.
ADNFCR-1681-ID-19220466-ADNFCR