UK economy set for feeble growth in 2013, says NIESR
The UK economy is set to grow by just 0.7 per cent this year, according to the latest forecast from the National Institute of Economic and Social Research (NIESR). The forecast is well below that of the Chancellor's official budget watchdog, the Office for Budget Responsibility, which sees growth of 1.2 per cent in 2013. For 2014 NIESR predicts growth of 1.5 per cent, versus the OBR forecast of a 2 per cent expansion.
The think tank urged the Chancellor to adopt a new fiscal strategy to pep up the economy. "It remains our view that such a recovery would best be supported by a significant increase in public sector net investment, with looser fiscal policy in the short term while demand remains weak," it said.
There was further evidence that the new year had got off to a uninspiring start yesterday with a survey from the Chartered Institute of Purchasing & Supply (Cips) showing that construction output sank for the third straight month in January.
The impact of snow across much of the country and another month of falling new business left the Cips activity index unchanged at 48.7, below the 50 neutral mark.
Cips said that housebuilding remains in the doldrums and civil engineering saw its first fall in activity for four months, although commercial building is holding its own.
The Barclays Capital analyst Blerina Uruci said: "We expect construction activity to remain subdued during 2013 as the weakness in new orders is likely to continue."
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...