Scotland’s economic growth almost stalled at the end of the summer amid a downturn in the manufacturing sector, official data has shown.
Monthly estimates for onshore gross domestic product show a 0.1 per cent rise in August when the country ended most of its coronavirus restrictions. It means that the economy is still 1.3 per cent short of its pre-pandemic level of output.
Rates of growth have been slowing in recent months after sharp rises earlier in the year.
The services sector, which accounts for about three quarters of GDP, grew by 0.2 per cent in August, with food and accommodation making the largest contribution. Domestic holidays and the ending of almost all restrictions on the hospitality trade were among the factors contributing to the uplift. Construction, which accounts for about 6 per cent of GDP, improved by 0.2 per cent in the month.
The production sector contracted by 0.8 per cent, with manufacturing falling by 2.6 per cent. That is the fourth consecutive month where manufacturing output has fallen. Some companies in the sector have been struggling with supply chain issues, as well as dealing with the price inflation of raw materials.
Advertisement
Kate Forbes, Scotland’s finance secretary, said: “It is encouraging to see such strong growth in accommodation and food services, where activity increased by 8.7 per cent during August.
“These businesses were particularly badly hit by coronavirus restrictions and benefited from the move beyond Level 0 on August 9, along with other consumer-facing sectors such as arts, recreation and culture.
“It is a tribute to their innovation and resilience that they are bouncing back so robustly. The pandemic is not over and challenges remain, but we are working hard to ensure Scotland emerges with a stronger, greener and fairer economy.”
Separate data published yesterday suggested that the Scottish economy had grown more quickly than previously thought in the second quarter of this year.
The Quarterly National Accounts said that the GDP increase in the April-to-June period was 5.6 per cent, compared with the 4.7 per cent rise announced in September. Services was said to have recorded growth of 6.1 per cent, production 4.2 per cent and construction 3.8 per cent.
Advertisement
The data stated that GDP for the three months to the end of June was 2.9 per cent below where it was for the final quarter of 2019.
