Scottish economy growing despite slowdown

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Scottish economy growing despite slowdown

Thu 26th Jun 2008

Consumer confidence remains healthy as the Scottish economy continues to grow at a reduced rate, Lloyds TSB Scotland has said.

In the three months ending in May 31st , 39 per cent of firms surveyed reported an increase in turnover, 33 per cent a static turnover and 28 per cent a decrease.

This gave a net balance of +11 per cent - more than the previous quarter but a third of that recorded for the same quarter a year ago.

Both production and services businesses continue to grow, despite a slowdown.

They are also expressing increased concern over credit availability.

Professor Donald MacRae, chief economist at Lloyds TSB Scotland, said that consumer confidence was high enough for retail sales to increase at an annual rate of eight per cent.

He said business expectations for the next six months have fallen, but noted that the Scottish economy had had above trend growth in 2007.

He said it faced "reduced growth" in 2008 from 1.5 per cent to 1.75 per cent.

Scottish politicians this week expected the property market to be healthier than in the rest of the UK, according to the Herald.

Nationwide predicted a four per cent house price rise.

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