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Scottish economic growth slows in second quarter Scottish economic growth slows in second quarter
(about 1 hour later)
Scottish economic growth slowed in the second quarter of this year despite a strong performance by the construction sector, according to new figures.Scottish economic growth slowed in the second quarter of this year despite a strong performance by the construction sector, according to new figures.
Total output in the economy grew by 0.1% between April and June, compared with 0.6% in the previous quarter.Total output in the economy grew by 0.1% between April and June, compared with 0.6% in the previous quarter.
The construction sector grew by 3.5% but output in services was flat while production contracted by 0.8%, according to national statistics.The construction sector grew by 3.5% but output in services was flat while production contracted by 0.8%, according to national statistics.
The UK economy as a whole expanded by 0.7% in the second quarter.
On an annual basis, Scottish GDP grew by 1.9%.On an annual basis, Scottish GDP grew by 1.9%.
The Scottish economy has now grown for 12 consecutive quarters and output is now 3% above its pre-recession peak.The Scottish economy has now grown for 12 consecutive quarters and output is now 3% above its pre-recession peak.
'Positive story''Positive story'
Deputy First Minister John Swinney said: "It is positive to see further growth in the construction sector as a result of continuing strong investment and support from public spending in Scotland.Deputy First Minister John Swinney said: "It is positive to see further growth in the construction sector as a result of continuing strong investment and support from public spending in Scotland.
"Likewise the healthy expansion in Q2 (quarter two) of the electricity and gas supply sector is a positive story for Scotland's economy."Likewise the healthy expansion in Q2 (quarter two) of the electricity and gas supply sector is a positive story for Scotland's economy.
"Nonetheless, the figures point to challenges in some sectors as a result of several factors, including subdued demand in the oil and gas sector and a normalising of some very strong trends in recent periods."Nonetheless, the figures point to challenges in some sectors as a result of several factors, including subdued demand in the oil and gas sector and a normalising of some very strong trends in recent periods.
"The annual growth rate moderated a little compared to the very strong growth seen in recent periods but remains healthy by historical standards.""The annual growth rate moderated a little compared to the very strong growth seen in recent periods but remains healthy by historical standards."
He added: "The solid performance in the construction sector highlights the success of the Scottish government's approach of investing in Scotland's infrastructure.He added: "The solid performance in the construction sector highlights the success of the Scottish government's approach of investing in Scotland's infrastructure.
"Projects like the Queensferry Crossing create public assets that will benefit long term growth as well as helping to support the economy as it continues to recover.""Projects like the Queensferry Crossing create public assets that will benefit long term growth as well as helping to support the economy as it continues to recover."
'Very concerning'
Commenting on the figures, Scottish Chambers of Commerce chief executive Liz Cameron said: "An apparent contraction in the production sector has reduced Scotland's growth rate to its lowest level for three years.
"This is very concerning, particularly when measured against the healthy UK growth rate of 0.7% over the same period.
"This should act as a wake-up call to prove that we simply cannot take the growth of our businesses and our economy for granted and that government policy, both at a UK and Scottish level, must be absolutely focused on creating an environment in which businesses can thrive."