UK growth forecasts weaken but 'no recession yet'

Michael Saunders, an economist at Citigroup, said the firm had begun the year with a growth forecast stronger than many of its peers in the private sector.  However, he now believes a pick-up in business activity and a consequent boost to jobs and demand is unlikely, the FT reports “Our base is not a recession, but an extended period of sluggish growth and rising unemployment,” Saunders said. Although British companies have cash on their balance sheets, the slide in financial markets along with continued fears over eurozone government debt has jolted confidence badly, he said. “...