IoD ‘Return to GDP growth welcome, but ‘nothing to celebrate’

Responding to latest official GDP figures, showing that the economy grew by 0.3% in Q3, Tej Parikh, Chief Economist at the Institute of Directors, said:

“A return to growth is welcome news, but narrowly avoiding a recession is nothing to celebrate.

“The UK economy has been in stop-start mode all year, with growth punctuated by the various Brexit deadlines. Indeed, the pick-up in the third quarter numbers may slightly exaggerate the strength in the economy, with some activity likely to have been brought forward before October 31st. The final quarter of 2019 could be weaker as stockpiles continue to be run down.

“While high employment has provided some support for the economy, underlying weaknesses in investment and productivity still need addressing. With uncertainty likely to persist and a continued slowdown in global markets, the onus is on the new government to stimulate economic activity and move the UK beyond its current yo-yo pattern of growth.”