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UK economy walking a tightrope following July setback, ICAEW says

Author: ICAEW

Published: 13 Sep 2023

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

“The economy suffered a notable setback in July as unseasonably wet weather and strike action drove a large drop in services and industrial output.

“Although lower energy bills will help support activity, the drag on incomes from high inflation, an onerous tax burden and rising interest rates means the UK is walking an unenviable tightrope between feeble growth and a full-blown recession.

“With interest rates likely to rise again this month, the Bank of England risks damaging our economic prospects further by overshooting on rate hikes, given the long time-lag between rate rises and their effect on the real economy.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com