Responding to the latest GDP data published by the Office for National Statistics, Stuart Morrison, Research Manager at the British Chambers of Commerce, said:
“Growth of 0.7% in the three months to April shows the UK economy maintained good momentum from the start of the year, as businesses again proved resilient.
“But the fall of 0.1% for the month may be the first sign of the impacts of the Iran conflict. While monthly figures can be volatile, this is a signal that will need to be closely monitored.
“Businesses have already told us about the direct impacts they are facing from the conflict. Our research shows that energy costs, shipping disruption and raw material prices are all rising.
“Much depends on the length of the conflict. While our forecast has already downgraded growth expectations to 0.9% for the year, inflation is not expected to hit the same levels as the 2022 crisis. But this could all change if the conflict deepens.
“Against this backdrop, it is vital that the UK remains a stable and supportive environment for business. Firms are not looking for quick fixes, they want certainty to make long-term decisions on investment, hiring and expansion.
“To unlock growth, government and business must work in partnership to help firms trade more, invest in new technology and develop a skilled workforce for the future.”
Read full ONS data here