The CBI has upgraded its GDP growth forecast for this year to 2.6% (from 2.4% forecast in June)
- 2.8% in 2016 (from 2.5%)
Says a stronger uplift in productivity
Robust household spending
Decent business investment prospects
More:
- "Strong domestic demand and upbeat official data since our last forecast has boosted our outlook for 2015"
- "We expect this strength to continue into next year"
- Expecta all the growth in 2015 to come from domestic demand ... says the rest of the world's economy giving no help to net exports
- Rising GBP is dampening activity
- "The strong pound is hampering our competitiveness abroad and growth in the eurozone, our biggest trading partner, will remain subdued for the foreseeable future, particularly given renewed uncertainty," said John Cridland, the CBI's outgoing director general.
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GBP holding up this morning ... running behind EUR and JOY strength, but far outstripping AUD, NZD and CAD:
I posted an AUD chart recently. NZD also getting hit today:
