GDP Increase Mirrors Business Optimism Seen in the South West

The latest Gross Domestic Product (GDP) data released today revealed that the UK economy grew by 0.5% in the final quarter of 2015, illustrating why businesses in the South West reported high confidence in the same period.

The figures, released by the Office for National Statistics (ONS) found that:

• GDP is estimated to have increased by 0.5% in Quarter 4 of 2015, compared to a 0.4% increase in Quarter 3.
• This is 1.9% higher compared with the same quarter a year ago.
• Business West's Local Business Survey in Q4 2015 found that that the South West economy ended 2015 on a positive note, with increases in domestic and international sales, and high business confidence.

Commenting on the latest GDP figures, Phil Smith, Managing Director of Business West, said:

“These figures are likely to ease fears of a sharp economic slowdown after some alarming news in global markets recently, as an increase in growth is always a sure fire way to calm the nerves.

“This positive news also mirrors the sentiment we are hearing from South West firms, as our latest survey showed that our region closed out 2015 on a high. With local businesses reporting boosts in sales and high confidence to go with this encouraging national news, we appear to stand in good stead.

“That said, the job is far from done. Although growth is on an upward trajectory, there are still fundamental weaknesses to be addressed if we are to secure long term prosperity, such as the gap between the output of our education system and the needs of business.”