Scottish firms optimistic but challenged

Scottish firms continue to display resilience in the face of economic uncertainty, reporting a “broadly positive” fourth quarter, according to new data published today.

The latest quarterly economic indicator survey from the Scottish Chambers of Commerce (SCC) found growing optimism among manufacturing, and financial and business services firms.

But the report, produced in collaboration with the University of Strathclyde’s Fraser of Allander Institute, also said fears around investment levels and recruitment hurdles suggest growth may remain “fragile” in coming months.

More positively, the SCC said the retail sector has shown signs of an “encouraging” fourth quarter, with reported improvements in key financial indicators such as sales and cash flow. However, such optimism was tempered by such improvements deemed to be “coming from a particularly low base relative to our other surveyed sectors”.

Neil Amner of Anderson Strathern, chairman of the SCC Economic Advisory Group, said the results of the latest economic indicator “are broadly positive, and suggest that Scottish businesses are continuing to display positivity in an uncertain economic environment”.

However, he highlighted firms’ many concerns, and Graeme Roy of the Fraser of Allander Institute also commented: “With heightened levels of uncertainty, it is unsurprising that investment intentions remain modest, whilst the tight labour market means many firms continue to report difficulties in recruiting staff.” 0 Graeme Roy of the Fraser of Allander Institute