The Confederation for British Industry (CBI) has said that UK economic growth in 2013 is likely to be 0.2% higher than previously thought. At the same time, it increased its forecasts for 2014 growth from 2% to 2.3% as a strong performance from the retail sector boosted hopes for an economic recovery.

The CBI said that it was “still early days”, despite the rise in the high street sales and footfall and a positive statement on forward guidance from new Bank of England governor Mark Carney.

"The economy has started to gain momentum and confidence is picking up, but it's still early days," said CBI director-general John Cridland.

"We need to see a full-blown rebalancing of our economy, with stronger business investment and trade, before we can call a sustainable recovery.
"We hope that will begin to emerge next year, as the eurozone starts growing again."