“This data confirms that the economy was floundering even before the impact of recent interest rate rises are fully felt as the extra bank holiday for the Coronation curbed output in May.
“While the economy may rebound in June, the significant squeeze on activity from high inflation, stealth tax hikes and rising interest rates means the Prime Minister may struggle to meet his pledge to get the economy growing.
“These GDP figures are unlikely to prevent another rate rise in August. However, given the long time lag between rate rises and its effect on the real economy, tightening further risks damaging our growth prospects by overcorrecting for past errors.”
Notes to editors:
Contact: ICAEW media office firstname.lastname@example.org, email@example.com or 07866 853 841