The Confederation of British industry has revised its predicted growth figures for the second time this year.
According to the Financial Times, the forecast has been reduced by 0.4 per cent from 1.3 per cent to 1.7 per cent. This in turn is the second reduction to the forecast this year, after the prediction was changed from its original figure of 1.8 per cent in February.
Although there is no change in the expectations for the performance of British business, wider market conditions, including concerns over the Eurozone and US debt, have contributed to the revisions.
“The global economy has slowed in the face of several shocks, including the Japanese tsunami and soaring commodity prices,” said the CBI’s director general John Cridland.
“These factors have combined with political uncertainties around the eurozone sovereign debt crisis, the wrangling in Congress over the US debt ceiling and the policy tightening in China, to erode confidence and soften activity.”