Business leaders expect the UK economy will emerge from recession through modest growth in the third and fourth quarters of this year.
However, constraints on demand will ensure that growth in 2010 is fragile, according to the CBI.
Revealing its latest economic forecast, the CBI said that near-term economic prospects are brightening, which will be good news for interim managers.
A recovery is underway in the global economy, which has been boosted by substantial fiscal and monetary stimuli, and the inventory cycle is starting to turn, both at home and abroad, which is helping to lift production.
Not such good news is the belief that the pace of recovery in 2010 is expected to be slow and the CBI predicts that UK GDP will post quarter-on-quarter growth of 0.3% in 2009 Q3, edging up to 0.4% in the final quarter as consumers bring spending forward in advance of the VAT increase in January.
This increase will dampen spending in early 2010 and although companies may be rebuilding stocks, they are likely to do so very cautiously. As a result, 2010 should start with very weak growth of only 0.1% in the first quarter of 2010, and 0.3% in the second.
Richard Lambert, CBI Director-General, said the outlook is improving but conditions in the UK will remain tough for some time yet.