CBI responds to last GDP data

Alpesh Paleja, CBI Lead Economist, said:

“The latest GDP data likely marks the start of a downturn for the UK economy, which could last for most of the coming year. Even accounting for an extra bank holiday in September, it’s clear that underlying activity has weakened – as shown by our recent business surveys.

“A weaker growth outlook and persistently high inflation will make for some difficult decisions on economic policy. The Autumn Statement must learn the lessons of the 2010s: fiscal sustainability and lifting trend growth are both immediate priorities. Alongside reassuring markets and protecting the most vulnerable, the government should safeguard capital spending and investment allowances to drive private sector growth.”