Nowcast fo 2019 Q3

The latest nowcasts from our Scottish nowcasting model cover the 3rd quarter of 2019.

Our model suggest that:

  • Growth in Q3 is 0.28% which, at an annual rate, is 1.13%

This growth estimate comes after the release of official estimates of economic growth in 2019 Q2 from the Scottish Government which showed that the Scottish economy contracted by -0.3% in Q2. This was slightly more than the UK as a whole, which contracted by -0.2%.

However the Scottish economy did grow 0.7% relative the the same quarter the year before, albeit again this was weaker than the UK as a whole, which expanded 1.2%.

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Q3 Nowcast update

This post reports a series of nowcasts which have yet been reported on the blog. Official estimates for Q2 have now been released by the Scottish Government showing a contraction of -0.3%.

For Q3 our current estimates are:

  • September estimate: Growth in 2019 Q3 (July – September) of 0.30% which, at an annual rate, is 1.21%
  • August estimate: growth of 0.30% in 2019 Q3 which, at an annual rate is 1.21%.

Shortly we will produce new estimates incorporating the new Q2 growth data from the Scottish Government.

It is also worth noting that an alternative set of nowcasts is available covering all NUTS1 regions of the UK, also produced by researchers at the Fraser of Allander Institute. These estimates are available at: www.escoe.ac.uk/regionalnowcasting.

 

May Nowcast Update

This morning the latest UK data for growth in Q1 2019 were released. These put UK growth at 0.5% in Q1, with growth in production, construction and service sectors.

In this blog we release our nowcasts of the Scottish economy in Q1 2019 and Q2 2019.

The UK numbers were stronger than growth in the previous quarter (which was a disappointing 0.2%), and stronger than might have been expected.

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March Scottish Nowcast update

Economic forecasting and nowcasting is notoriously difficult – even more so in a period of heightened economic uncertainty.

With the 29th March looming large on the calendar, economic uncertainty at present is extraordinarily high.

With this in mind, we report the latest results from our nowcasting model for Scotland.

Our nowcast for GVA growth in 2018 Q4 is 0.29% which, at an annual rate, is 1.16%

Our nowcast for GVA growth in 2019 Q1 is 0.31% which, at an annual rate, is 1.24%

These estimates are consistent with the economic narrative developing in the UK, but also in Scotland, of businesses continuing to trade in a ‘business as usual’ manner, but holding off on the sorts of investment decisions which might produce growth at or above long-term trend growth.

This is partly reflected in the early measures of activity provided by business survey indicators, which we use in our model. The PMI for January showed activity declining in Scotland (as well as other places like London) in the first month of the year.

Official data on Scottish growth in 2018 Q4 will be released on the 20th of March, for comparison UK growth in Q4 came in at 0.2%, representing weak and below trend growth. Scotland had grown ahead of the UK in the first half of 2018, but data for the summer was much weaker with Scotland lagging the UK once more.

We will have to wait until sometime in June for official estimates of growth in Q1 2019 in Scotland.

Estimates for the whole of the UK will be released in May, and should the UK exit the EU without a deal on 29th March – all eyes will be on the early indicators of activity in the economy to assess the impact.