Grounds for optimism

THERE are 'grounds for optimism' in the UK economy for 2013, according to a leading forecaster.

Scott Livermore, pictured, senior economic adviser to the Ernst & Young Item Club, said that one of the bright spots on the horizon was that threats from external global events – including the US fiscal cliff and the potential break-up of the eurozone – had 'diminished considerably' over the past 12 months.

But he expected that inflation would fall, which would be good news for consumers and increase their available spend.

Businesses may also look to invest, where they may have been holding back because of uncertain prospects.