CBI responds to latest GDP figures

Alpesh Paleja, CBI Lead Economist, said:

“While the economy performed better than expected in November, the data can’t mask the underlining problems in the UK economy. High inflation is severely impacting household budgets and businesses are facing intense cost pressures. As a result, consumer spending and investment plans are weakening.

“The question for the government now is not whether we will fall into recession, but how long and deep the recession will be. If we want to curb the extent of a downturn, then the Prime Minister and the Chancellor need to stay alive to enacting pro-growth measures. Notably, introducing a permanent full investment allowances regime will help to shore up capital spending, during a time of high inflation and constrained demand. The positive impact on the supply side of the economy will also bode well for growth prospects over the longer term."