- UK GDP for Q2 2012: -0.7% on the quarter, -0.8% on the year
Commenting on the preliminary GDP figure for the second quarter, published today by the ONS, Caroline Williams CEO Norfolk Chamber of Commerce said:
“The first estimate for Q2 GDP is not the news businesses wanted to hear. While many firms are faring better than official statistics may suggest, it’s time for the government to be bold and show leadership.
“The ONS figures show a much larger decline in GDP in the second quarter than most analysts expected, deepening the technical recession. We believe that the disappointing figure paints an unduly pessimistic picture of the state of the economy. While the erratic construction figures were expected to show a large decline, the falls seen in services and in manufacturing are larger than anticipated.
“Norfolk business surveyed within the BCC’s Quarterly Economic Survey show a more positive picture and we still believe this gives a more accurate indication of the underlying trends in the economy.
“It is difficult to reconcile the very positive recent labour market figures published by the ONS, with the continued declines reported in GDP. Increases in employment, and in the average numbers of hours worked, at a time when output is falling, suggest implausible falls in productivity. We believe the employment figures are more accurate than the output figures, and the GDP figures are likely eventually to be revised up.
“Regardless of the uncertainty surrounding the ONS estimate, it is clear that economic growth remains much too low and the economy is stagnating. The main aim must now to focus on measures that will help businesses grow, invest, and create jobs.”
