UK economy set for slow but steady 'pick-up'

The Confederation of British Industry(CBI) is cautiously optimistic in predicting a slow but steady ‘pick up’ in recovery for the UK economy in the remainder of 2012.

Despite the ‘double dip’, the lobby group which represents 240.000 UK companies insisted that optimism among businesses had been increasing and manufacturing demand had held up, pointing towards increased momentum in the second half of the year.

A recent survey from the Recruitment and Employment Confederation also found that employer confidence in terms of hiring intensions grew throughout the first quarter of 2012. Confidence has now reached its highest level since the survey began in 2009. Employers intend to hire more staff in both the short and long tern, with a particular emphasis on more permanent workers. 72% of employers plan to increase the number of permanent employees over the next quarter with 70% expecting to increase permanent hires over the coming 12 months.

John Cridland CBI Director General said “We have always said the path back to sustainable economic growth will be a long and difficult one with many bumps along the way. To rebalance our economy towards exports and investment will take time and patience” he added; “Optimism among businesses has been increasing since the turn of the year with manufacturing demand holding up and that is beginning to translate into more jobs and investment.”

Locally, Mike Ashton, Chief Exec of the Herefordshire and Worcestershire Chamber of Commerce commented recently “Despite our prediction of slow growth, there is no need for doom and gloom. The UK economy has potential to recover and thrive. Our economic prospects will improve, but not overnight” he continued, “ A strong recovery relies on creating the right conditions for growth. Companies need the best possible environment to generate wealth and create jobs.”

Taking an overview of opinion, it is thought that this current dip will be mild and short …..let’s hope they are right!

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