The general economic outlook shared by UK business leaders has darkened considerably on the back of rising inflation and ongoing market turbulence, the CBI has reported.

According to CBI director-general Richard Lambert, the body has been "consistently overoptimistic about the economic outlook over the past 12 months", adding that the signs point to a slow 2009, with any recovery unlikely to take place until well into 2010.

Writing in a letter to the Financial Times to mark the one year anniversary of the credit crunch, as well as to coincide with this week's publication of the Bank of England's quarterly inflation report, Mr Lambert pointed to the high rate of inflation as a factor exacerbating the current difficulties.

"The fact that inflation has been running so far above target has meant that the Bank has not been able to cut interest rates to support a rapidly slowing economy," he explained.

Further highlighting the dark mood prevalent among British businesses, a separate report from the Chartered Institute for Professional Development has revealed that just 29% of UK employers plan to increase their recruitment levels, a fall from 37% in the space of just three months.