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Scottish economic growth slows in second quarter | Scottish economic growth slows in second quarter |
(about 4 hours 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 0.4% in the previous quarter. | Total output in the economy grew by 0.1% between April and June, compared with 0.4% 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. | 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 grown for 12 consecutive quarters and output is now 3% above its pre-recession peak. | The Scottish economy has grown for 12 consecutive quarters and output is now 3% above its pre-recession peak. |
Analysis by Douglas Fraser, Scotland business and economy editor | |
Something is mis-firing in the Scottish economy. | |
The cause is partly business confidence and poor productivity. Problems with the oil and gas sector are clearly not helping. And partly it's the difficulties facing exporters into the eurozone. | |
The latest figures on Gross Domestic Product look disappointing, at 0.1% growth between the first and second quarter of the year. | |
If it weren't for construction activity, the Scottish economy would have contracted between April and June. | |
Another quarter like that, and it would be a recession. | |
More from Douglas Fraser's blog | |
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." |
Scottish Conservative enterprise spokesman Murdo Fraser said: "It is good to see the Scottish economy still growing, but disappointing to see a dip in GDP compared to the growth the wider UK has enjoyed. | Scottish Conservative enterprise spokesman Murdo Fraser said: "It is good to see the Scottish economy still growing, but disappointing to see a dip in GDP compared to the growth the wider UK has enjoyed. |
"On the back of recent surveys showing low business confidence in Scotland, this is more evidence that our economy is not doing as well as it should." | "On the back of recent surveys showing low business confidence in Scotland, this is more evidence that our economy is not doing as well as it should." |
Scottish Liberal Democrat leader Willie Rennie said that while the economy continued to grow across the UK, it seemed to have "almost flatlined" in Scotland under the SNP. | Scottish Liberal Democrat leader Willie Rennie said that while the economy continued to grow across the UK, it seemed to have "almost flatlined" in Scotland under the SNP. |
He added: "Instead of picking fights with Westminster, the first minister must focus on securing Scottish growth in the economy, jobs and business." | He added: "Instead of picking fights with Westminster, the first minister must focus on securing Scottish growth in the economy, jobs and business." |
'Very concerning' | '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. | 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 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." | "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." |
Andy Willox, Scottish policy convener for the Federation of Small Businesses, said: "Recent evidence from our members revealed a significant dip in small business confidence. | Andy Willox, Scottish policy convener for the Federation of Small Businesses, said: "Recent evidence from our members revealed a significant dip in small business confidence. |
"Today's growth figures show that there's obviously still work to do to get Scotland's economy firing on all cylinders at a national and local level." | "Today's growth figures show that there's obviously still work to do to get Scotland's economy firing on all cylinders at a national and local level." |