HC Deb 14 July 1988 vol 137 cc547-8
9. Mr. Thurnham

To ask the Chancellor of the Exchequer what has been the growth in economic output during the last 12 months; and if he will make a statement.

Mr. Lawson

Over the 12 months to the first quarter of 1988 total output grew by 5 per cent.

Mr. Thurnham

I welcome today's fall in unemployment, which marks the longest continuous period of falling unemployment since the war. Does this not provide convincing evidence of the much greater success of this Government's economic policies than any of the policies that were ever adopted by the Opposition?

Mr. Lawson

My hon. Friend is absolutely correct when he refers to today's excellent figures for unemployment and employment. He might also have a look at today's figures for manufacturing output, which show that it is some 6½ per cent. up on a year ago and that this is the fastest rising sector of the economy.

Mr. Skinner

Can the Chancellor of the Exchequer explain to the House why it is that, on another economic output front—the invisibles, which in election year were running at £700 million a month—had fallen to £400 million a month in the first three months of 1988? There is a point of view that these figures were fiddled during election year to assist the balance of payments during that year. Will he take into account the fact that if that £400 million continues throughout 1988 it will produce another £2 billion deficit on his balance of payments?

Mr. Lawson

I must say in all seriousness to the hon. Member that the figure for the balance of invisible trade, which is frequently revised in both directions by the Central Statistical Office, is worked out totally independently by that office. He has cast a very serious slur on the Central Statistical Office and the civil servants who work for it, and I hope that he will withdraw it.

Sir Dudley Smith

Is my right hon. Friend aware that the west midlands is working again, producing again and making profits again? Does this not speak volumes for the policies of my right hon. Friend and the Government?

Mr. Lawson

Yes, indeed, and as an east midlands Member I am delighted to see the rapidly growing prosperity of both the east and west midlands. It is one of the most encouraging aspects of the remarkable growth that we have had in this country over the past five years and more that it is now being seen in all parts of the economy.