CBI responds to latest monthly GDP figures

Ben Jones, CBI Lead Economist, said:

“Varied performance across sectors in July makes it difficult to separate the signal from the background noise. Manufacturing and construction output has been volatile recently and strikes continue to weigh on parts of the service sector. Consumer spending is similarly mixed – July was a washout for the retail sector, but a bumper month at the box office.

“While rising wages and lower energy prices should aid households and help keep recession at bay, the loss of economic momentum through Q3 now being reported by firms could keep the economy stuck in a low gear.

“With encouraging investment key to delivering growth, the Autumn Budget provides a vital opportunity to shore up business confidence. CBI analysis shows that a permanent full expensing regime could boost GDP by 2% by 2030/31 – with benefits felt across the whole economy.”