The hospitality and tourism industry is expected to be hardest hit by the rising strikes, which will further dampen economic activity. The Center for Economic and Business Research (CEBR) estimates that by the end of January, rail strikes will hurt GDP by almost £500m.
Doug McWilliams, founder of CEBR, said: “Rail strikes are impacting GDP in a number of areas, with the hospitality industry suffering the most.”
Mr. Dales added that while the strikes are “minor compared to the 1970s and early 1980s,” they are becoming more widespread and affecting economic activity elsewhere.
The recession and cost-of-living crisis have left the Bank doubtful about further rate hikes.