Scotland business

Positive outlook for Scots economy despite slow growth

Construction workers Image copyright Thinkstock
Image caption Sales revenue and profits declined noticeably in the construction and tourism sectors

The Scottish economy experienced slower than expected growth in the last quarter but the outlook remains positive, according to a report.

Scottish Chambers of Commerce's (SCC) quarterly survey found the economy has returned to pre-recession levels but warned Scotland needs to "up its game".

Employment growth was also weaker than at the end of 2014.

SCC chief executive Liz Cameron said: "Other economies have moved on and we need to catch up and overtake them."

She added: "Our first economic indicator covering 2015 depicts an economy that has returned to pre-recession levels and is now on a path of slower growth.

"However, it is not enough to get back to where we were - that wasn't good enough then and it isn't good enough now. Scotland needs to up our game and our targets."

Slow growth

The business survey, carried out in conjunction with the Fraser of Allander Institute of Strathclyde University, suggested growth levels across most sectors slowed considerably compared with the final quarter of last year, but most indicators still remained above pre-recession levels and long-term averages.

The construction and tourism sectors indicated a decline in sales and profits.

The financial and business services, manufacturing and retail and wholesale firms all experienced slow growth.

Productivity and spending on investment increased in every sector, according to the survey of nearly 650 firms.

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