Spring Surge in GDP Growth, But Challenges Remain

- GDP growth in Q2 2015 (April to June) was 0.7%, up from 0.4% in Q1 2015 - GDP in Q2 was 2.6% higher than a year earlier and 5.2% higher than its pre-recession peak in 2008.

Commenting on the GDP figures for Q2 2015, Ian Larrard, Director of Swindon & Wiltshire Initiative, part of Business West, said:

"Make no mistake about it, the UK economy saw a Spring surge after growth slowed at the start of the year. Today we hear news of 0.7% GDP growth in the second quarter of the year after our Local Business Survey saw increases in most major indicators over the same period. Nonetheless, fundamental weaknesses still remain, illustrated by a drop in confidence here in the South West.

"On the top level, the statistics paint a positive picture for both the national and local economy here in the South West. This quarter's increase in GDP is the tenth consecutive quarter of national growth which is fuelling calls for interest rate rises as noted by Bank of England Governor Mark Carney last week. From these headlines it is tempting to assume that long term growth is a foregone conclusion but local business confidence and other indicators beg to differ.

"Delve a little deeper into the numbers and you will find that weak productivity, high youth unemployment and a glaring trade deficit are some of the issues that are acting as a drag on confidence and long term growth. While a Spring surge in GDP is welcome news, we still need a government determined to assist business to tackle these long standing weaknesses."