CBI responds to monthly GDP figures

Ben Jones, Lead Economist, CBI said:

"The rebound in activity in April underlines the relative resilience of the UK economy in the face of significant headwinds over the past year. The outlook is brightening a little, with inflation having peaked, wholesale energy prices normalising and labour supply slowly improving.

"However households and businesses still face a difficult few months. Inflation is coming down, but more slowly than expected, with interest rates set to rise a little higher. The combination of high inflation and rising debt service costs will constrain consumer cash flow and dampen the housing market.

"Businesses are feeling the pinch from tighter financial conditions and lending to firms has stagnated in recent months, especially to SMEs. Although energy and digital transformations remain high on firms’ agendas, uncertainty over the wider economic outlook means businesses investment is likely to remain subdued in the near term."