‘Worst of recession over’

A survey of Scottish businesses has claimed “the worst of the recession may now be over” as respondents returned performance and confidence levels close to pre-recession levels.

But the Scottish Chambers of Commerce (SCC) struck a downbeat tone, noting that the recovery remained “fragile”, as retailers in particular told the business group that they expect a decrease in profitability in 2014 due to stalled consumer confidence.

The business survey for the first quarter of 2014 found confidence among manufacturing, construction and tourism firms has now returned to levels seen in 2007.

Hoteliers were boosted by a rise in the use of conference facilities, while 80% of employers responding to the survey said they were “looking at either retaining their workforce or recruiting” in the next three months.

Liz Cameron, chief executive of the SCC said: “The hard work and determination of Scottish businesses is yielding positive outcomes for the growth of Scotland’s economy. All the indicators in this survey point to sustained economic growth as key sectors increase investment to expand activity, boosted by higher levels of business optimism.

“Investment intentions are encouraging with manufacturing showing superb results with higher levels of investment than at any time in the past six years and robust growth in export orders.”