| UK economy at dangerous junction, warns Item Club |
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The UK economy has stalled at a dangerous junction, according to independent forecaster Ernst and Young.
The body, whose Item Club uses the same forecasting methods as the government, says the economy needs new growth measures to get back on track. It says uncertainty across the eurozone and a slowing world economy is undermining business confidence. Ernst and Young also says the Bank of England's new quantitative easing (QE) bout is unlikely to prompt recovery. The Item Club has downgraded its forecast for gross domestic product (GDP) to just 0.9% this year, well below the 1.4% it predicted three months ago. |
