CBI responds to latest monthly GDP figures

Alpesh Paleja, CBI Lead Economist, said:

“Growth disappointed in October, reinforcing concerns about the resilience of the UK’s economic recovery to the Omicron variant and the impact of further restrictions. We need to create consistency in our approach and build confidence by reducing the oscillation between normal life and restrictions as we learn to live with the virus and its variants.

“Meanwhile, supply pressures remain acute and further rises in inflation are looming. We expect growth to build further momentum ahead, but more action is needed to address longer-term challenges, including “scarring” from COVID and poor productivity.

“It’s clear that a booster for growth – particularly investment - is needed, to protect and build on our recovery. Government can back business by pursuing pro-investment and pro-innovation regulation to help build new markets and a competitive tax regime; incentivising business investment. Getting this mix right will pay dividends over the longer term.”