Growth in the economy is expected to restart in 2012, according to a CBI study, but BDO expect a return to recession, and all growth is dependent on a euro zone recovery.

The CBI expects 0.9 per cent growth in 2012, expanding to modest growth of two per cent predicted in 2013. Quarter-on-quarter growth is expected to remain fragile in the first two quarters of this year, rising only slightly, to 0.6 per cent in the second.

Households are expected to remain cautious because of modest wage growth and continuing high unemployment, which the CBI reported would peak at 2.9 million in the first quarter of 2013.

BDO has reported that although an upturn in business confidence suggested that the UK economy would stand on firmer ground from mid-2012, short-term prospects remain weak.

It said that with BDO’s Optimism Index – which forecasts business confidence two quarters ahead – hovering the below the growth mark of 95 per cent, the UK economy is likely to see another recession, although it said it would not hit the lows of 2008 and 2009.

Peter Hemington, partner at BDO LLP, said: “Undoubtedly, prospects for growth continue to be fragile – as the UK has already very likely entered a technical recession and the situation in the euro zone remains difficult to predict.”

John Cridland, CBI director-general, said: “Economic conditions will continue to be tough, especially in the first half of the year, and the UK recovery will depend on the successful resolution of the euro zone crisis.”