The downturn in the UK economy is worse than previously thought, according to the UK�s largest employers� organisation, which has warned of �uncomfortable� times ahead.

The downturn in the UK economy is worse than previously thought, according to the UK's largest employers' organisation, which has warned of "uncomfortable" times ahead.

The Confederation of British Industry (CBI) has told members there is "no doubt that the mood has darkened in the last two or three months" and admits its initial growth estimates were over-optimistic. Richard Lambert, CBI director general, said in a letter to members that the economy's growth prospects for next year and into 2010 "look no better than anaemic".

It has already cut its forecasts for growth in 2009 from 1% to 0.4%, saying the credit crunch had turned out to be bigger and more prolonged than first feared, while inflation has also soared higher than predicted.

"A year ago, it seemed reasonable to hope that the worst would be over by now. This has turned out not to be the case," wrote Mr Lambert.

Meanwhile a leading Scottish business figure says major changes to the economy of Scotland's largest city over the past decade could see it withstand the worst of the credit crunch.

Richard Cairns, chief executive of Glasgow Chamber of Commerce, said: "We are in a recession when employment levels are down, along with exports. Right now Glasgow is still experiencing historically high employment levels and exports from the city are significantly higher than for the first six months of 2007.

"The fittest and the best equipped economies will cope better than others. Glasgow's economy is in much better shape because of the last 10 or 15 years."