In its latest quarterly forecasts, published today, the Confederation of British Industry (CBI) has raised its projection of gross domestic product growth this year from 1% to 1.2%.
This projected growth is still less than half of the United Kingdom's longer-term annual trend rate of expansion of about 2.5%.
The CBI has raised its 2014 UK growth forecast from 2% to 2.3%.
It says: "The economy has performed more strongly in the second quarter of 2013 than we expected in our May forecast, and early indications for Q3 suggest further short-term momentum."
However, the CBI added a note of caution. It stated: "Although the United Kingdom economy appears to be on the path to recovery, there is uncertainty around the sustainability of growth in the medium term.
"A move to more balanced growth, including stronger growth in investment and exports, will be necessary to secure the recovery."
The CBI expects UK unemployment, on the International Labour Organisation measure, to stay stuck at its second-quarter level of 2.51 million or 7.8% throughout this year.
Thereafter, it expects a very slow improvement in the labour market, projecting that ILO unemployment will fall to 2.45 million or 7.5% by the end of 2014.
The Bank of England's Monetary Policy Committee said this month that it did not intend to raise base rates from 0.5% at least until ILO unemployment had fallen to a "threshold" of 7%, subject to conditions relating to inflation and financial stability.
The CBI said: "We expect unemployment to be relatively sticky over the medium term, as hours worked increase and productivity begins to recover.
"Consequently, the CBI expects interest rates to remain on hold beyond 2014."