14 May 2026
Ben Jones, CBI Senior Lead Economist, said:
“The rebound in GDP growth in the first quarter looks unusually strong, largely reflecting February’s outsized gain. This pace of growth is unlikely to be sustained, particularly as the effects of the Iran conflict begin to be felt.
“With higher fuel and energy costs feeding through and disruption to global supply chains set to intensify the longer the Strait of Hormuz remains closed, pressures on businesses will mount, creating headwinds that are likely to weigh on growth through the remainder of 2026.”
“As the economic impact of the conflict becomes clearer, businesses will be looking to government to take further action to tackle the cost of doing business. This includes taking policy-related costs off business electricity bills, tangibly cutting the regulatory burden, and finding appropriate landing zones on the Employment Rights Act.”