CBI responds to latest (Q2) GDP figures

Alpesh Paleja, CBI Lead Economist, said: 

“The fall in activity over Q2 was widely expected, given the impact of the extra Jubilee bank holiday. The economy should return to growth in Q3 as the bank holiday effect comes out of the comparison. 

“But this growth won’t last. The forthcoming hike in Ofgem’s energy price cap will push inflation to new highs, leading to a significant economic downturn. Vulnerable businesses and households will be squeezed further, so it’s good to see both leadership candidates and the current government signalling further support will be provided to those hit hardest.

“Implementing other pro-growth decisions now – for example, adding flexibility to the Apprenticeship Levy will also pave the way for recovery beyond this crisis.”