Responding to the latest GDP data, published by the ONS this morning, David Bharier, Head of Research at the BCC, said:

“Today’s GDP figures, showing growth of 0.5% in the three months to May, but a fall of 0.1% in the month, reinforce the view that UK growth remains fragile, lacking sustained drive. 

“Production and construction both saw falls of output in May of 0.9% and 0.6% respectively, with tariffs likely a factor. While the month was weak, stronger performances in March and April have balanced out the dip for the three months. 

“Strong, sustainable growth is the only route out of the Chancellor’s current fiscal trap. But as our latest research shows, most SMEs are not reporting increased sales or renewed investment, and sentiment remains weak following the rise in employer NICs. 

“Rapid growth in a mature economy like the UK is a tall order. But the country’s fundamentals remain strong and there are real opportunities for a step-change – particularly in AI, life sciences, and advanced manufacturing.  

“Our Blueprint for Growth, published earlier this month, outlines a series of practical policy proposals. Businesses need to see real progress on the Government’s various economic strategies, momentum on global trade talks, and crucially a simpler tax and regulatory system that supports growth.” 

More detail on the ONS data can be found here.