Wouldn't it be great to have some positive economic news to report? Unfortunately there doesn't seem to much. The CBI is revising its growth rate to 1.8% this year, and 1.7% in 2009. This is gloomier than the chancellor's recent forecast of between 1.75% and 2.25% growth in 2008. The recent figures on the growing cost of living seem to be behind this latest downgrade. Higher food and energy prices are the main culprits.

The upside - if there is one - is that slower growth should bring down inflation and we can expect further cuts in interest rates later this year.

There is some optimism, however. But the CBI warns that although these factors mean the economy is in for a "bumpier ride", after two years of strong growth many businesses say conditions are still good.

"Outside the financial and property sectors, the mood of business is, however, nothing like as gloomy as you might guess from reading today's headlines," Richard Lambert said.

From a small business perspective, being aware of economic conditions and understanding the implications for your organisation become increasingly important, and organisations like Business Link can offer practical advice and guidance.