FPB’s Response to UK Economy’s 0.2% Contraction
Posted on 25. Jan, 2012 by editor in Business News
Responding to figures released today by the Office for National Statistics, which show economic activity in the UK contracted by 0.2% in the last three months of 2011, Phil Orford, Chief Executive of The Forum of Private Business, commented: “There’s no escaping it, the figures are disappointing. But it’s important to put it into perspective.”
Orford (pictured) continued: “Quarter 4 in 2010 saw a significantly higher contraction of 0.5%, which was attributed to the snowy weather, followed the next quarter by positive growth. While there wasn’t a repeat of the weather for Q4 2011, there was the equally damaging eurozone debt storm which hugely dented confidence among consumers and businesses. People are erring on the side of caution and are holding back on spending and growth plans.
“You can also factor in to the equation two days of public sector industrial action, and a 4% drop in energy consumption due to the mild autumn. None of these helped.
“So it’s by no means certain that the economy will continue with negative growth for this current quarter, although if there is any growth it will be small.
He added: “We urge the Government to drive forward, and quickly, with plans to help small firms grow the economy. As the Coalition has often said, it will be SMEs who deliver the necessary growth for UK plc.”
