CBI slashes growth forecast

The organisation has cut its 2008 full year growth forecast from 1.7pc to 1.1pc, with 0.2pc and 0.1pc contractions expected for Q3 and Q4, respectively. Next year, growth is tipped to reach just 0.3pc, a full percentage point down on earlier forecasts. The downgrades reflect the sharper-than-expected slowdown in the first half of this year, weak consumer demand, high energy and commodity prices and the ongoing impact of the credit crunch. CPI inflation is expected to peak at 4.8pc this quarter, before falling rapidly next year and allowing base rates to be cut to 4pc by the spring. With ...