UK Economy Remains In Precarious Position

11th August 2023

David Bharier, Head of Research at the British Chambers of Commerce, Reacts to the latest GDP data from the ONS

Reacting to the latest GDP data from the ONS, David Bharier, Head of Research at the British Chambers of Commerce, said:   

“Today’s first estimate for Q2, showing GDP grew by 0.2% is better news than expected, but the UK economy remains in a precarious place. Businesses are continuing to face a worrying mix of high inflation, rising interest rates, a tight labour market, and global economic uncertainty. 

“Today’s data is in line with our Quarterly Economic Forecast which expects just 0.3% for the whole of 2023. While the UK remains on course to avoid a technical recession, small movements in one direction or the another won’t mean much for many firms facing the toughest trading conditions in years.  

“Our latest Quarterly Economic Survey shows that most SMEs continue to report no improvement to investment, cash flow, or sales. Worryingly, 41% of businesses are now concerned about the impact of rising interest rates. 

“UK businesses are very adaptable, but they are looking for clear direction from the government and the Bank of England, particularly on interest rate policy and a long-term plan to unlock investment. 

Read the full ONS GDP data here