Commenting on ONS data that showed GDP decline by 0.1% in September 2024, down from growth of 0.2% in August, Anna Leach, Chief Economist at the Institute of Directors, said:

“It’s worrying to see the economy shrink slightly in September for the first time since April and against expectations for steady momentum. This brings Q3 GDP growth in at 0.1%, behind the Bank of England’s recently revised expectations for growth of 0.2%, and well below growth of 0.5% in Q2.

“The Chancellor has announced welcome reforms to consolidate fragmented pension funds in her Mansion House speech, as well as other reforms to redirect UK regulators to better supporting growth. Alongside the capital behind the National Wealth Fund and updates to the fiscal framework to accommodate and incentivise government investment, it is good to see further steps being taken to create a supportive environment for investment. And the call to improve trade ties with the EU is welcome and a top priority for IoD members.

“Today’s GDP data highlight the fragility of UK growth, however. Reforms that potentially support longer term growth sit uneasily alongside Budget measures that will more rapidly and certainly damage investment, employment and growth. We will continue working with the government to ensure that the UK is a competitive environment for business and growth, both now and in the future.”