Business activity is set for a “steep decline” in the first quarter of 2025 according to the latest forecast from the CBI
It will be the sharpest fall in four years, headcount will be cut “sharply,”and hiring intentions will be at their worst since Oct 2020
The report says that the UK economy “is headed for the worst of all worlds” with
budget tax rises aputting the brakes on economic activity and hiring
All three major sectors are expecting volumes to fall in the first quarter of the year with manufacturers’ expectations at their weakest since May 2020
Alpesh Paleja, CBI Interim Deputy Chief Economist, said:
“There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer. Businesses continue to cite the impact of measures announced in the Budget – particularly the rise in employer NICs – exacerbating an already tepid demand environment.
“As we head into 2025, firms are looking to the government to boost confidence and to give them a reason to invest, whether that’s long overdue moves to reform the apprenticeship levy, supporting the health of the workforce through increased occupational health incentives or a reform of business rates.
“In the longer term, businesses will be looking to the industrial strategy to provide the stability and certainty which can unlock innovation and investment – and provide that much needed growth for the economy which can deliver prosperity for firms and households alike.”
