Scottish firms progress in second quarter
Scottish businesses defied Brexit uncertainty to post growth in the second quarter of the year despite a slump in exports, according to figures out today.
The latest Scottish Business Monitor report compiled by the Fraser of Allander Institute found that 40 per cent of firms experienced a rise in activity during the period.
However, investment continued to decline in the second quarter of this year as businesses remain reluctant to commit funds due to the lack of clarity on the economy’s direction.
The report also found that the net balance of exports slumped to its lowest level in three years, with only one in five firms indicating a rise in export activity in the three months to May.
Mairi Spowage, head of economic analysis at the institute, said the downward trend in exports appears to be “disproportionately affecting smaller businesses”.
Graeme Roy, director of the institute, commented that the latest figures show businesses appear to remain “resilient” against the continued Brexit uncertainty.
However, he said forthcoming Scottish GDP figures for the first quarter are likely to show a degree of volatility as firms stockpiled in the run-up to the potential “no deal” Brexit deadline of 29 March.
“Little has happened since then to give Scotland’s business community any confidence that policy-makers at Westminster have a credible plan for taking the UK out of the EU that does not involve major disruption to our economy,” he said.