CBI cuts outlook for UK economic growth but backs continued austerity

Britain’s leading corporate lobby group has insisted the government should press ahead with its austerity drive, despite warnings that another round of deep cuts could dent the recovery.

UK retail sales bounding ahead, says CBI

Retail sales are "bounding ahead", with growth accelerating strongly in the year to May, the CBI has said.

Slow economic growth to be 'prolonged', says Bank economist

Many of the world's major economies face a prolonged period of slow growth, according to the Bank of England's chief economist, Andy Haldane.

Why interest rates won't rise any time soon

Interest rates will remain on hold beyond next year’s general election, the Bank of England is expected to signal this week, in an environment of lower inflation, weak wage growth and increasing eurozone headwinds.

George Osborne will miss UK export target, BCC warns

George Osborne will miss his target of doubling UK exports to £1tn by 2020 because the government has failed to take the radical action needed, a leading business lobby group has said.

CBI: Firms must pay workers more as economy improves

The head of the UK's main business lobby group has said too many people are "stuck" in minimum wage jobs, despite an upturn in the UK economy.

UK economy growing faster than forecast, the ONS says

The UK economy is growing faster than previously estimated, according to the latest official figures. The Office for National Statistics (ONS) said gross domestic product was up 0.8% in the July-to-September period compared with the previous quarter, confirming its previous estimate.

UK jobless rate falls to three-year low as economy grows

The number of unemployed people in the UK fell by 48,000 to 2.47 million between July and September, the Office for National Statistics has said.

UK retailers say talk of economic recovery premature

LONDON (Reuters) - Some of Britain's biggest retailers on Thursday cast doubt over signs of economic recovery, saying consumer spending - the largest engine of growth - was likely to remain subdued until wages rise ahead of inflation, which could be over a year away.

UK economy is turning corner, George Osborne says

The UK economy is "turning a corner", Chancellor George Osborne has said in a speech in London.

UK construction PMI hits highest level in nearly six years: Markit/CIPS

LONDON: British construction activity grew at the fastest pace in nearly six years in August, driven by residential building, a survey showed on Tuesday, in another sign that the UK's economic recovery is gathering pace.

UK government borrowing rises in June

George Osborne's debt-busting plans were dealt a blow on Friday when figures showed underlying government borrowing rose by £500m in June.

UK services sector in fastest growth since March 2012

The UK's services sector, which accounts for around 75% of the economy, grew at its fastest rate since March 2012, new data suggests. The Markit/CIPS Services Purchasing Managers' Index (PMI) for the UK rose to 54.9 in May from 52.9 in April.

Britain must be ready to 'walk away' from EU, says Boris Johnson

Boris Johnson has said Britain "must be prepared" to "walk away" from the European Union if David Cameron's efforts to strike a new deal with Brussels fail.

Britain's growth halved, Osborne turns to Bank of England for help

LONDON (Reuters) - Chancellor George Osborne turned to the Bank of England on Wednesday to help galvanise a stagnant economy which he said would grow this year at just half the rate previously expected.

Long haul ahead for Britain's struggling economy

LONDON: When the financial crisis began to spread five years ago, British coffee machine-maker Fracino raced to get ahead of it.

UK manufacturing suffers shock contraction

Activity in the UK's manufacturing sector unexpectedly shrank in February, according to a closely watched survey.

UK to borrow more in 2012-13, deeper job cuts loom - institute

LONDON (Reuters) - Britain's government will borrow more rather than less this fiscal year and its multi-year austerity plan will lead to 1.2 million public sector job cuts, a leading policy institute said on Wednesday.

With the UK economy stuck in a groove, what prospects for 2013?

On the Saturday before Christmas the shop windows told their own story. Up to 50% off at Hobbs. Discounts of 60% at LK Bennett.

Global economic recovery weakening, says IMF

The global economic recovery is weakening as government policies have failed to restore confidence, the International Monetary Fund has said.