CBI responds to monthly GDP figures

Ben Jones, CBI Lead Economist, said:

“Output was weaker than expected in October, raising the prospect that the UK could see a small contraction over the fourth quarter as a whole. CBI business surveys suggest private sector activity will be flat into the New Year, with the labour market also softening.

“Businesses are gearing up for another tough year ahead. Faced with weak demand and ongoing pressures on costs, companies are taking a hard look at their overheads and pursuing a cautious approach to staffing levels and investment.

“With an election on the horizon, it’s important to avoid adding any extra layers of uncertainty to the business environment. Seeking as much consensus as possible on growth-enhancing measures, such as speeding up planning and grid connectivity or policies to encourage innovation and tech adoption, would help to build confidence and unlock further investment.”