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UK economy 'to contract in 2012'

30 August 2012 Last updated at 16:26 BST

The UK economy is set to contract this year, according to the Confederation of British Industry (CBI).

It expects UK gross domestic product to shrink by 0.3% in 2012, compared with an earlier forecast of 0.6% growth.

The director general of the CBI, John Cridland said things will pick up next year.

He called on the government to help investment happen and to do a bit more for the housing market.