CBI responds to GDP data for August 2026

Ben Jones, CBI Senior Lead Economist, said:

“GDP was broadly steady in August, but this follows exceptionally strong growth in June and July. The economy has generally performed well so far this year. But amid rising inflation and tightening financial conditions, maintaining that momentum does look difficult, with a more subdued end to 2026 in prospect.

“The messages coming from firms tell a story of an economy marked by contrasts. The strength of demand varies across sectors. Firms are investing, but cost pressures are forcing tough choices about which projects to back. Softer hiring sits alongside persistent shortages of key skills. Activity has proved resilient as businesses adapt to a challenging environment, but often at the expense of margins and future expansion plans.

“The Autumn Budget provides an opportunity for the government to build on the economy's resilience by giving businesses the confidence and certainty they need to invest, expand and create jobs. That means taking action to reduce business electricity costs, ease the burden of employer National Insurance Contributions and reform business rates, while removing wider barriers to investment. With fiscal headroom limited, the Chancellor should prioritise measures that unlock growth, rather than adding further cost pressures that risk holding back investment, job creation and ultimately improvements in living standards.”