GDP figure revised up
Output fall less severe, but food and drink suffers downturn
Food and drink sales stuttered over second quarter
Scottish output in the second quarter weakened by slightly less than initial figures indicated but new data shows food and drink showed a significant slowdown.
GDP is now estimated to have fallen by 0.2% over the period April to June, according to statistics announced by the Chief Statistician. This compares to the first estimate of 0.3%, published on 18 September, and has been revised up because of stronger growth in the services sector.
During the second quarter, the revised figures show that output in the construction sector fell by 2.4%, output in the production sector fell by 1.5%, and output in the services sector grew by 0.2%.
As reported in the first estimate, two sub-sectors of manufacturing – food and drink, pharmaceutical and related industries – account for most of the contraction this quarter. Output in these industries fell back after a strong performance in the first quarter.
When compared to the second quarter of 2018, growth over the year is now estimated at 0.6%. This has been revised down from the first estimate of 0.7% because growth in the previous two quarters has been revised down slightly.
Economy Secretary Derek Mackay said: “We have been clear that any form of Brexit will damage our economy and the ongoing risk of a ‘no deal’ Brexit has clearly impacted our economy following a period of sustained economic growth.
“There is likely to be continued volatility as a result of the ongoing uncertainty relating to the timing and nature of Brexit and the response of companies and households to that.
“This uncertainty has been compounded further by the UK Government’s decision to delay its budget which seriously undermines the devolution settlement.
“Scotland did not vote for Brexit, but our economy is already paying the price for it. We will continue to stand firm against efforts to take us out of the EU against our will.”