New figures showing weak growth across the Scottish economy have prompted calls for the Scottish Government to refocus its spending priorities.
Official data showed there was a 0.1% rise in Scotland’s gross domestic product (GDP) over the past three months the same figure as achieved in the wider UK economy.
But the second-quarter figure had dipped from the 0.2% increase achieved during the previous three months and year-on-year growth had slipped from 1.4% in quarter one to 1.1%.
Production proved to be the best-performing sector with growth of 1.7% but there was only limited progress in services, which saw a 0.1% rise.
The construction sector continued to struggle for a third successive quarter with a further 2.3% drop.
Scottish Building Federation chief executive Michael Levack said the figures demonstrate the urgent need to bolster the trade.
He said: ”This significant contraction in the construction industry of 2.3% in the second quarter of the year is deeply concerning and must act as a wake-up call.
”It translates as around 10,000 jobs being lost in just three months. The construction industry is a key driver of Scotland’s economy but we are continuing to suffer a prolonged slump.
”We need to see an even stronger emphasis from the Scottish Government on protecting and consolidating capital investment in construction projects to support the industry and start rebuilding employment, skills and capacity.”
CBI Scotland director Iain McMillan said the Government had a responsibility to do ”everything possible” to help Scotland’s business sector get back on its feet.
He said: ”Scotland’s economic recovery is tepid and lacks any discernible vigour and momentum, with expansion in some sectors being offset by weaker performance in others.”
Finance Secretary John Swinney said the Government was using all means at its disposal to support the Scottish economy but he again called for further economic powers to be devolved to Holyrood.
He said: ”While Scotland’s economy continued to grow in the second quarter of 2011, and the Scottish labour market continues to outperform the UK as a whole, these figures reinforce the urgent need for the UK Government to deliver a Plan MacB approach, to ensure that the recovery we are building here in Scotland is not derailed by Westminster’s wrong-headed economic policy.
”This must deliver real action in the areas where Scottish Government policy is making a difference: increased capital expenditure, improved access to finance for medium and small sized businesses, and the introduction of measures to boost consumer confidence and economic security.
”The production sector showed the largest increase in the figures, growing by 1.7% over the quarter and outperforming the UK where the published growth rate showed a fall of 1.2% over the same period.
”To address the challenges in the construction sector we have developed a £2.5 billion pounds Non-Profit Distributing programme of capital investment, and are transferring over three-quarters of a billion pounds from revenue to capital in this spending period.”
Photo Gareth Fuller/PA Wire