GDP for Q1 2012: -0.3% on the quarter, -0.1% on the year
Commenting on the revised GDP figure published today by the ONS, Phil Smith, Managing Director of Business West said: “The recent revised ONS figure which shows a contraction of -0.3% in the first quarter of the year does bring with it an element of concern. Now more than ever, it is important for Government to strike a fair balance and deliver on policies which facilitate growth, to allow business to expand.
“Indeed a recent Business West survey, found that an increasing proportion (70%) of businesses are reporting spare capacity. Business has the capacity to expand, all Government needs to do is facilitate and apply the appropriate measures to make things happen
“However, as we have alluded to previously, 0.1% revision downwards, together with confirmation of a 'technical' recession doesn’t reflect business experience on the ground which is more positive. Business confidence is critical, so it’s important we don’t talk ourselves into defeat.
“Indicators such as retail sales and trends in the labour market imply the economy is beginning to make progress. For the vast majority of businesses this recent announcement does not change anything. They will just get on with their day to day business”.