The outlook for the UK economy is not as good as it could be, but recession is not looming, one industry body believes.
According to the latest growth forecast by the Confederation of British Industry (CBI), the UK's gross domestic product will increase by 1.7 per cent this year and 1.3 per cent in 2009.
While these figures are lower than previous estimates, the CBI warns firms against being overly cautions.
Richard Lambert, the CBI's director-general, said: "These days, firms are leaner and more efficient and our economy's reach is far more global.
"We should avoid believing a recession is inevitable, or talk ourselves into unnecessary trouble."
However, the report also indicated that unemployment levels will increase to 1.79 million by the end of 2009, meaning that around 150,000 people will lose their jobs over the next year and a half.
Last week, data published by Bellweather revealed firms which put off dealing with an email or a phone call for 30 minutes lose an average of £18,840 a year in lost business.
