Business leaders will be keeping very close to customers in the months ahead

Commenting on ONS data that shows monthly GDP falling by 0.1% in March 2022, Kitty Ussher, Chief Economist at the Institute of Directors, said: 

“It is perhaps unsurprising that slower retail activity caused the economy to contract very slightly in March, given the huge shock to economic confidence stemming from Russia’s invasion of Ukraine and household fears about forthcoming energy and national insurance rises at the same time as a surge in Covid-19 cases that kept many people at home. In addition, the economy was also affected by the wind-down of the NHS Test and Trace service and slowing vaccination activity.

“Business leaders, particularly in the consumer-facing sector, will be keeping very close to their customers in the months ahead to understand the extent to which cost of living concerns are affecting spending patterns in the longer term.”