Slow GDP growth unsurprising, says CBI

Date: 26th April 2010

The low level of economic growth in the UK, revealed by the Office for National Statistics (ONS) last week, was to be expected, it has been claimed.

ONS figures showed that the UK's economy expanded by just 0.2 per cent in the first three months of this year.

According to the organisation, the small growth was largely down to expansion in the business services and financial sectors.

Ian McCafferty, chief economic adviser for the Confederation of British Industry (CBI), said the low figure wan not surprising and predicted slow growth for the remainder of the year.

"The UK economy continued to expand over the first quarter of this year, but growth was slower, much as we expected," he said.

"With the end of the VAT cut and the car scrappage scheme, weaker spending within the motor vehicles, retail and wholesale sectors came as no surprise."

The expert said he expects "relatively slow" growth in 2010 despite recent CBI surveys showing improvement in a number of UK sectors.

Posted by Anthony Burns