October Growth Unlikely to Halt Recession

Reacting to the ONS GDP figures for October, David Bharier, Head of Research at the BCC, said:   

“The monthly growth in GDP for October of 0.5% is overshadowed by the underlying three-month trend revealed by the data, which shows a contraction in the economy of 0.3%.

“As September’s figure was depressed by the Bank Holiday for the Queen’s funeral, October’s data was always likely to show a comparative improvement.

“But the BCC’s latest quarterly economic forecast expects the UK economy to be in recession for five consecutive quarters.

“Business confidence has been falling dramatically as firms face into a wall of higher prices and energy bills, increased taxation, and rising borrowing costs.

“Unless the Government helps create a stable environment to allow businesses to invest, the UK faces a long-term loss of competitiveness.

“Businesses need to see concrete action to resolve the immediate disruptions facing the UK economy, such as soaring energy costs and the burdens in our trading relationship with Europe.

“They also need to see a long-term plan on infrastructure, skills, trade, and green innovation.”