Menu
25/09/2008
Scottish Economy 'Grinding To A Halt'
New figures show a substantial increase in the proportion of Scottish companies seeing a fall in turnover, with the service sector particularly hard hit.
The latest Lloyds TSB Scotland Business Monitor describes the economy north of the border as "grinding to a halt" in the last quarter, with 39% of firms seeing turnover fall and 32% seeing turnover unchanged.
With 29% of firms reporting rising turnover this gives a net balance of -10%, markedly below the +11% recorded three months ago and the +28% recorded a year ago.
"Scottish economic growth has slowed from the latest annual underlying rate of 2.1," said Professor Donald MacRae, chief economist of Lloyds TSB Scotland.
"Consumer confidence remains at a level sufficient to produce retail sales increasing at an annual rate of 6.6%. Claimant unemployment at 2.8% remains low. House price increases in Scotland have avoided a major price fall so far although sales and purchases have fallen significantly."
Expectations for future economic growth have also crashed, with a balance of -28% of firms expected rising turnover in the next half year.
"The Business Monitor shows the Scottish economy feeling the effects of the credit crunch with slowing output, increasing costs and falling expectations to produce the most pessimistic assessment of future prospects in 10¾ years. After above trend growth in 2007, the Scottish economy is facing reduced growth in 2008," he noted.
In response to the report, Conservative finance spokesperson Derek Brownlee said the bleak picture showed why cutting business rates for small companies is so important, and also why households need immediate assistance.
"The Scottish Conservatives will continue to press our fully costed plan for every one of Scotland's two million households who pay council tax to get a cut of £150, and our pensioners to get even more with their bills cut in half.
"There are measures which we can take here, but there are bigger forces at work, and Scotland is not immune from the legacy of Gordon Brown and his failure to save for a rainy day. He has given us a broken economy.
"Gordon Brown promised an end to boom and bust. He was half right and we are all now paying the price as the credit crunch bites hard," he argued.
(GK/JM)
The latest Lloyds TSB Scotland Business Monitor describes the economy north of the border as "grinding to a halt" in the last quarter, with 39% of firms seeing turnover fall and 32% seeing turnover unchanged.
With 29% of firms reporting rising turnover this gives a net balance of -10%, markedly below the +11% recorded three months ago and the +28% recorded a year ago.
"Scottish economic growth has slowed from the latest annual underlying rate of 2.1," said Professor Donald MacRae, chief economist of Lloyds TSB Scotland.
"Consumer confidence remains at a level sufficient to produce retail sales increasing at an annual rate of 6.6%. Claimant unemployment at 2.8% remains low. House price increases in Scotland have avoided a major price fall so far although sales and purchases have fallen significantly."
Expectations for future economic growth have also crashed, with a balance of -28% of firms expected rising turnover in the next half year.
"The Business Monitor shows the Scottish economy feeling the effects of the credit crunch with slowing output, increasing costs and falling expectations to produce the most pessimistic assessment of future prospects in 10¾ years. After above trend growth in 2007, the Scottish economy is facing reduced growth in 2008," he noted.
In response to the report, Conservative finance spokesperson Derek Brownlee said the bleak picture showed why cutting business rates for small companies is so important, and also why households need immediate assistance.
"The Scottish Conservatives will continue to press our fully costed plan for every one of Scotland's two million households who pay council tax to get a cut of £150, and our pensioners to get even more with their bills cut in half.
"There are measures which we can take here, but there are bigger forces at work, and Scotland is not immune from the legacy of Gordon Brown and his failure to save for a rainy day. He has given us a broken economy.
"Gordon Brown promised an end to boom and bust. He was half right and we are all now paying the price as the credit crunch bites hard," he argued.
(GK/JM)
Related UK National News Stories
Click here for the latest headlines.
29 June 2012
Employers Get Support For Graduate Jobs
A new pilot scheme in Scotalnd to support graduate recruitment and business growth has been launched by the Minister for Youth Employment Angela Constance. Businesses with fewer than 50 employees in Ayrshire, Lanarkshire, Renfrewshire and Dumfries and Galloway can now receive up to £3,000 to take on a graduate in a permanent post.
Employers Get Support For Graduate Jobs
A new pilot scheme in Scotalnd to support graduate recruitment and business growth has been launched by the Minister for Youth Employment Angela Constance. Businesses with fewer than 50 employees in Ayrshire, Lanarkshire, Renfrewshire and Dumfries and Galloway can now receive up to £3,000 to take on a graduate in a permanent post.
28 March 2013
Record High For Scotland's Renewable Energy
The Department of Energy and Climate Change (DECC) has said Scotland generated 7% more renewable energy in 2012 than the previous year. In its latest report, it said 14,600 Gigawatt hours were generated in Scotland from renewable energy sources such as wind and hydro.
Record High For Scotland's Renewable Energy
The Department of Energy and Climate Change (DECC) has said Scotland generated 7% more renewable energy in 2012 than the previous year. In its latest report, it said 14,600 Gigawatt hours were generated in Scotland from renewable energy sources such as wind and hydro.
17 June 2011
Scottish Digital Network Plan Set Out
Steps to realise the Scottish Broadcasting Commission's vision for a Scottish Digital Network (SDN) have been set out by the Cabinet Secretary for Culture and External Affairs.
Scottish Digital Network Plan Set Out
Steps to realise the Scottish Broadcasting Commission's vision for a Scottish Digital Network (SDN) have been set out by the Cabinet Secretary for Culture and External Affairs.
21 July 2011
Scottish Gold Mining 'Worth £80m To Economy'
Scotland's first commercial gold mine is expected to produce 20,000 ounces of gold and 80,000 ounces of silver per year, of which 5,000 ounces of gold will be extracted as unrefined gold bars and identifiable as 'Scottish Gold'.
Scottish Gold Mining 'Worth £80m To Economy'
Scotland's first commercial gold mine is expected to produce 20,000 ounces of gold and 80,000 ounces of silver per year, of which 5,000 ounces of gold will be extracted as unrefined gold bars and identifiable as 'Scottish Gold'.
11 May 2015
Growth Returns To Scottish Economy - Survey
A new survey has found that Scotland's economy has returned to growth. The Bank of Scotland's Purchasing Managers' Index (PMI) survey revealed that both employment and new business increased in the country in the month of April.
Growth Returns To Scottish Economy - Survey
A new survey has found that Scotland's economy has returned to growth. The Bank of Scotland's Purchasing Managers' Index (PMI) survey revealed that both employment and new business increased in the country in the month of April.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
