Slowdown in GDP Growth Reinforces Need for a Political Focus on Growth

Business West respond to GDP figures for Q1 2015.

• GDP growth in Q1 2015 was 0.3%, down from 0.6% in Q4 2014
• GDP in Q1 2015 was 2.4% higher than a year earlier, and 4.0% higher than the pre-recession peak in 2008
• Business West Local Business Survey in Q1 2015 saw an increase in confidence but a decrease in most major indicators such as sales, recruitment and cashflow

Commenting on the GDP figures for Q1 2015, published today by the ONS, Ian Larrard, Managing Director of Business West, said:

“The slowdown in GDP growth was expected following weak construction and production figures. In the South West we also saw a decrease in most major indicators such as sales recruitment and cashflow when we polled over 800 firms in our Local Business Survey in Q1. Whilst disappointing figures this quarter are cause for concern, economic output is 2.4% higher than a year earlier and 4% larger than before the recession and locally we also see that business confidence remains high.

“These results reinforce the drive to ensure that the incoming government focuses on the growth aspirations of business. We are in the middle of the campaign for the most wide open election in recent memory, and during this time of uncertainty, businesses need assurance that politicians will adopt a relentless focus on policies that deliver jobs and growth, instead of short term point scoring in the polls.

“We have released our Business Manifesto which lays out a set of ‘asks’ of our potential local MPs and has been sent to every prospective parliamentary candidate in our region. Businesses may not get a vote, but they must not be overlooked as the campaigning intensifies in the lead up to the 7th of May.”