CBI responds to latest GDP figures

Ben Jones, Lead Economist, said: 

"Forecasts for the UK economy have generally been edging down recently and the latest growth figures lived up to this gloomier view of near-term prospects.

“It’s clear that higher interest rates are starting to bite, and demand has become less resilient. CBI surveys agree with that overall picture and suggest that private sector activity is likely to stagnate in the coming months.

“The Bank of England’s latest forecasts make for particularly grim reading, with the economy expected to be flat next year and before growing at feeble rates in both 2025 and 2026. But action from the Chancellor in the Autumn Statement in a couple of weeks’ time could change that outlook.

“Unlocking business investment across the economy by making full expensing permanent could – according to CBI analysis - lead to a 2% increase to GDP by the end of the decade.”