By Andy Bruce

MANCHESTER, England, Dec 12 (Reuters) – The Confederation of British Industry on Friday bumped up its economic growth forecast for next year, citing a temporary ‍boost to government spending following the budget, while warning that deep-rooted problems remain.

The business association predicted the economy will grow 1.3% next year, up from its previous forecast of 1.0% in June, bringing the CBI broadly into line with forecasts from the International Monetary ‌Fund and the OECD.

It raised its forecast ‌for this year to 1.4% from 1.2%, reflecting upward revisions to recent official data.

“While it’s welcome to see our growth forecast upgraded for next year, the mood music reads more ‘cautious optimism’ than ’cause for celebration’,” CBI chief economist Louise Hellem said.

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