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UK facing challenging period despite strong June GDP rebound, ICAEW says

Author: ICAEW

Published: 11 Aug 2023

Suren Thiru, Economics Director at ICAEW, responded to the latest UK GDP figures, released by the Office for National Statistics today (Friday 11 August 2023):

"This underwhelming rebound in quarterly UK GDP highlights the worrying fragility in our economy as inflation, higher interest rates and waning customer demand weigh on activity. 

“While GDP bounced back strongly in June, this reflects more the reversal of the squeeze on output from the extra bank holiday in May, rather than a meaningful improvement in our growth trajectory.

“The UK is entering a more challenging period where, with stubbornly high inflation, soaring interest rates and unseasonably wet weather, GDP is likely to weaken considerably in the third quarter, despite a boost from lower energy bills.

“While interest rates will probably rise again in September, additional tightening risks further destabilising an already brittle economy by further suffocating consumer spending and businesses investment.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841