Growth forecast to slow next year
The Confederation of British Industry (CBI) has downgraded its forecast for UK growth next year for the third consecutive quarter.
The continuing problems in the credit market, weaker growth and global demand plus record oil prices are behind the predicted fall.
The CBI's quarterly economic forecast expects next year's annual rate of gross domestic product (GDP) growth to stand at 2%, down 0.2% on its last such survey.
It also expects consumer spending to slow sharply, from 3.1% this year to 1.9% in 2008.
