CBI responds to latest GDP data (September 2026)

Alpesh Paleja, CBI Deputy Chief Economist, said:

“Economic activity held up going into September, and gains over the summer mean that it managed to churn out bumper growth over the third quarter as a whole. Over the year to date, the information and communications and professional services sectors have supported much of the economy’s resilience, partially linked to the rollout of AI.

“But the picture is less encouraging when we dig a little deeper. Conditions are uneven across sectors, with activity more subdued elsewhere. Across the UK, firms continue to face a common challenge: the high and growing cost of doing business – set against a backdrop of uneven demand conditions. Another bout of rising
inflation will squeeze living standards again, eating into recent gains in resilience.

"While the Budget did lay some important foundations for long-term growth, much of the government’s reform agenda has been deferred to the forthcoming Ten-Year Plan. Businesses will be looking to the Ten-Year Plan for more detail on how the government intends to strengthen conditions for investment and growth. "Critical to success is bringing down energy costs across the economy, ensuring any greater public control crowds in – rather than crowds out – private investment, and tackling the NEETs crisis without undermining existing efforts by businesses to create opportunities for young people."