CBI comments on July GDP

Rain Newton-Smith, CBI Chief Economist, said:

“As more businesses were able to open their doors, the economy grew further in July. But economic growth lost some steam on the previous month, illustrating the continued uncertainty over the shape of an economic recovery ahead.

“The prospect of a second wave is restraining consumer and business confidence, and firms continue to face cash flow difficulties. With government support schemes coming to an end and renewed uncertainty over Brexit, clearly the road back to ‘normal’ is going to be a rocky one.

“A successor to the Job Retention Scheme and a deal with the EU are essential foundations for a near-term economic recovery. Learning the lessons from local lockdowns will also help manage any second wave of Covid, and get growth onto a more sustainable footing.”