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Negative October GDP puts PM’s growth target in jeopardy, ICAEW says

Author: ICAEW

Published: 13 Dec 2023

Suren Thiru, Economics Director at ICAEW, responded to the latest UK GDP figures for October 2023, released by the Office for National Statistics today (Wednesday 13 December 2023):

“These figures suggest that the economy was unravelling even before the full force of previous interest rate rises fed through to households and businesses. 

“October’s negative outturn puts the Prime Minister’s target to get the economy growing in jeopardy, with high inflation and borrowing costs likely to suppress economic activity in November and December.

“While the monetary tightening by the Bank of England made the government's promise to halve inflation more attainable, the subsequent squeeze on customer demand and business activity has made their pledge to grow the economy more difficult.

“These negative GDP figures mean that interest rates will almost certainly remain on hold this week. With inflation trending downwards and the economy at risk of recession, the case for cutting interest rates is likely to grow.”


Notes to editors:

Contact: ICAEW media office at media.office@icaew.com, tom.mackintosh@icaew.com, and 07866 853841