IoD press release Latest GDP data shows economy winded by Budget build-up
Commenting on ONS data that showed GDP fell by 0.1% in October 2024, following a decline in GDP of 0.1% in September, Anna Leach, Chief Economist at the Institute of Directors, said:
“It’s concerning to see a further growth disappointment for the UK, with all the major sectors showing falls in activity. October had seen the third successive decline in the IoD’s confidence measure for business leaders as businesses faced another month of damaging uncertainty in the run-up to the Budget. This provides a weak platform for Q4, and there is a risk that growth has gone into reverse in the private sector.
“As we head further into the festive season, and consumer confidence remains in the doldrums, many businesses are continuing the process of updating their business plans for the coming year to accommodate significant increases in employment costs. Unfortunately, as business finances have been under pressure for a considerable period, and monetary policy remains restrictive, the conditions for investment are also unfavourable. Investment is the key to driving up growth and living standards across the UK. Whilst there are welcome policy measures on the horizon which will over time improve the economic environment – from tax simplification to planning to industrial strategy – the recent blows to businesses have made the task of achieving stronger sustainable growth harder.”
