Lloyds Bank

Scottish economy stagnating

29 June 2012

The latest Lloyds TSB Scotland Business Monitor shows the Scottish economy stagnating.

In the three months ending May 2012, just under a third (32%) of firms surveyed increased turnover, 35% experienced static turnover, and a third (33%) experienced a decrease. This gave a net balance of -1%; an improvement from the -6% of the previous quarter but a slight deterioration on the +2% of the same quarter one year ago.

Donald MacRae, chief economist, Lloyds TSB Scotland said:
“This latest Business Monitor suggests the Scottish economy continues to stagnate and is struggling to maintain a limited degree of growth momentum in the face of a global slowdown. However, there is no definite sign of a relapse into a “double dip” but a suggestion of continuing slow recovery with low growth. Business confidence has not fallen further but remains at a low level. A return to more vigorous growth in the Scottish economy awaits an increase in confidence in both consumers and businesses. This in turn depends upon convincing evidence of policy initiatives to foster growth in both the Eurozone and UK economies."

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