Shropshire economy matches UK growth pace
Growth in Shropshire's economy is matching the rate of the UK as a whole – but Telford is growing behind the national rate, according to new figures released today.
While official figures for counties' economic output are only released once a year, Royal Bank of Scotland has released its own analysis of economic output across the UK for the second quarter of the year.
It shows that while Shropshire's economy has grown by 3.2 per cent over the last 12 months, Telford & Wrekin's is up by 3.1 per cent.
Official government data released last week revealed that the UK economy grew by 3.2 per cent in the second quarter of the year, meaning that the county as a whole is almost matching the pace of improvement across the country.
Last year, Telford's economic output was £3.16 billion, and Shropshire's was £4.75 billion, meaning that if both areas were to maintain the same growth throughout the year, they would generate gross value added – the official measure of the size of a local authority's economy – of £3.26 billion and £4.9 billion respectively.
Last year, official figures showed Telford's economy grow by 3.7 per cent, while Shropshire's contracted by 0.48 per cent.
The West Midlands expanded by 0.6 per cent in the second quarter, to leave it 2.9 per cent larger than a year ago – meaning Shropshire's output is growing faster than the region's as a whole.
RBS economist Sebastian Burnside said: "The West Midlands economy has now recorded 18 months of continuous growth.
"West Midlands manufacturing is performing strongly with growth of 3.3 per cent on the year.
"The retail and distribution industries are also doing well; seeing growth of 5.4 per cent and 3.6 per cent respectively. The benefits of this growth are being felt across the region with unemployment falling by 2.2 per cent in the last year, the second biggest fall of any UK region.
"But with average pay up by less than one per cent many households will still be feeling the squeeze."
Andrew Harrison, managing director for commercial and corporate banking in the Midlands, said: "I sense a strong mood of confidence building in the West Midlands.
"The region has weathered difficult times but with the resurgence of manufacturing and the rapid expansion of companies such as JLR, the news flow is increasingly positive.
"Investment in infrastructure and connectivity to the rest of the UK and, indeed, globally is critical to maintaining positive growth.
"Whilst HS2 divides opinion the business community in Birmingham see significant benefits from this major infrastructure investment."
Among the neighbouring authorities, Wolverhampton has grown by 3.1 per cent, Birmingham by only 2.9 per cent, and Herefordshire by a stronger 3.3 per cent, while Staffordshire is the second fastest-growing county in the West Midlands with a growth rate of 3.5 per cent.