CBI responds to latest GDP figures

Alpesh Paleja, CBI Lead Economist, said:

“The contraction in economic activity over Q2 is concerning, but much of this is due to a number of one-off factors.

“Growth has been pushed down by an unwind of stockpiling and car manufacturers shifting their seasonal shutdowns.

“Nonetheless, it’s clear from our business surveys that underlying momentum remains lukewarm, choked by a combination of slower global growth and Brexit uncertainty.

“As a result, business sentiment is dire.

“Securing a Brexit deal before the October 31 deadline is the first step to revving up the economy. The second is re-focusing attention on vital domestic priorities – such as pressing ahead with key infrastructure projects – to boost productivity and growth potential over the longer-term.”