CBI responds to March 2025 quarterly GDP data

Ben Jones, Lead Economist, CBI, said:     

“The rise in activity in March was a pleasant surprise, coming on the back of the strong bounce in February.

“While the latest data adds to signs that a gradual recovery in household spending may be underway, the strength of GDP over Q1 is likely to prove a one-off.

“An up-tick in inflation and a cooling labour market will see real household income growth slow this year, though lower interest rates should encourage consumers to save less and spend more.

“Businesses remain cautious over hiring and investment plans given the steep rise in employment costs following the Autumn Budget. And the uncertain global economic backdrop is hardly conducive for long-term planning.

“Now is a critical time for government to hardwire growth into the economy through the upcoming Spending Review. Measures to accelerate tech adoption alongside a modern Industrial Strategy can support the UK’s investment and growth potential and bolster the UK’s competitive position”.