by Chris Price

Confidence has stalled among small business owners in Kent after figures released today predicted slower growth in the UK economy.

According to the CBI, the country's GDP will continue to grow but at a more sluggish rate of 1.3 per cent compared to the 1.7 per cent forecast in May.

But the CBI still expects the economy to pick up in 2012.

The economy only expanded slowly by 0.2 per cent in the second quarter of this year.

Development manager for the Federation of Small Businesses in Kent and Medway Andrew Aves said: "The level of confidence of small businesses in Kent has stagnated in the second quarter of this year.

"We are not surprised at the downgrading. We are still in challenging times and businesses are going to find it tough to increase and maintain their levels of trade and predict their profit margins.

"We are expecting the situation to get worse rather than better, particularly in the west of the county which is more dependant on the London economy.

"The CBI's forecast is in proportion to what our members are saying."

The slow expansion in the second quarter is largely being put down to the reduced number of working days in April and disruptions to supply following the Japanese tsunami.

Yet only relatively modest investment growth of 3.7 per cent is expected in 2011 following political uncertainties around the Eurozone sovereign debt crisis, the wrangling in Congress over the US debt ceiling and the policy tightening in China.

Inflation is expected to be higher in the autumn and into next year than previously forecast, mainly due to higher utility prices coming into effect later this year.

CBI Director-General John Cridland said: "It may be a lacklustre recovery, but with solid net trade contributions and the positive impact of business investment, the UK will remain on a growth track."

Growth is expected to hit 2.2 per cent in 2012