KPMG comments on today’s GDP data - November 2023

“UK economy woes continue as activity slows further” says Yael Selfin, Chief Economist at KPMG UK.

“Economic activity is continuing to slow as high interest rates are weighing on consumer sentiment and disposable incomes. While real incomes have started to grow as inflation eases, this is being offset by higher mortgage rates feeding through into housing costs.

“Investment momentum has started to fade following a strong performance in the first half of this year, with a weakening residential market impacting the housing sector, while uncertainty around demand is dampening business investment. 

“The outlook for the economy remains weak, with no support expected from either fiscal or monetary policy to lift growth in the short run. Nonetheless, we expect inflation to return to target faster than the Bank of England’s latest forecast, which should be enough to prevent a recession this year, although risks are skewed to the downside.”

-Ends-  

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About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

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