- GDP growth in Q2 2015 was 0.7%, up from 0.4% in the first quarter
- Services output rose by 0.7%, total production was up by 1.0% but construction was flat
- GDP in Q2 2015 was 2.6% higher than a year ago and was 5.2% higher than in the pre-recession peak in Q1 2008
- GDP growth matches the forecast made by the British Chambers of Commerce (BCC) last month
Commenting on the preliminary GDP figures for Q2 2015, published today by the ONS, Caroline Williams, Chief Executive of Norfolk Chamber said:
“These national figures show a welcome acceleration in growth, with the services sector once again being the driving force. But today’s figures also point to other sectors where life is more difficult.”
“The manufacturing sector saw output fall by 0.3% in the quarter, continuing to highlight the serious, systemic problems our manufacturers face. The construction sector also remains weak. The 1% growth in total production was mainly due to a surge in mining and quarrying – a highly volatile sector.”
“The last BCC Quarterly Economic Survey showed that the Norfolk results for Q2, whilst mixed, showed signs of cautious growth. Norfolk’s manufacturing export sales and orders were stronger and higher than the national results and it was encouraging to see several of Norfolk QES balances positively ‘bucking the national trend. However concerns over the EU are still causing some uncertainty within the Norfolk business community and the impact of the reduced oil prices is being felt locally.”
Therefore it is positive that the latest GDP figures highlight that the UK economy continues to grow, but there are still many hurdles to clear in the months ahead. This is not the time for complacency. Our economy remains unbalanced and international uncertainty adds to the challenges our economy faces. A premature move to increase interest rates could choke the recovery and the MPC must keep rates at existing levels for the time being.”
