The Chartered Institute for Personnel and Development is reporting that businesses are stuck in a "wait and see" frame of mind, and are reluctant to invest.
David Caro, managing director of successful firm Qualcast, told James Naughtie that his company have not hired as many people as they would have liked, because they are "keeping an eye on where the economy is going".
Mark Hogan, Financial Secretary to the Treasury, said that eurozone crisis "does cast a long shadow over our economy".
He argued that it was important for consumers to feel that they had "money in their purse at the end of the month". "The last thing they need is for interest rates to rise," he said.
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