IoD press release Growth remains precarious despite stronger-than-expected GDP recovery

Commenting on ONS data that showed monthly GDP rising by 0.4% in May, following no growth in April, Anna Leach, Chief Economist at the Institute of Directors, said:

“The warmest May on record helped stoke a stronger-than-expected recovery in GDP growth, driving activity in consumer-facing sectors like retail as well as supporting construction activity. It’s good to see manufacturing picking up as well, meaning that all the main sectors contributed to growth.

“Growth is expected to be supported this year by improving real incomes and a strong labour market, with lower interest rates further out likely to support lending and business investment. But stepping out of the minutiae of GDP data, the UK’s growth remains precarious. IoD members were cautious on the outlook for the year ahead in the run-up to the election, with IoD data showing a drop-off in confidence, investment and hiring intentions.

“The new government’s commitment to delivering growth is heartening, and their early steps to deliver on that commitment are encouraging. Early announcements on the National Wealth Fund and on planning are welcome indications of the importance that investment will play in changing the UK’s growth story.”

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