This latest edition for the three months ending 31 May 2008 shows 39% of firms surveyed reporting an increase in turnover, 33% reporting static turnover and 28% reporting a decrease, giving a net balance of +11%, up from the previous quarter but only a third of that recorded for the same quarter one year ago.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland said: "Although Scottish economic growth is continuing it is still at a reduced rate. However, consumer confidence remains high enough to result in retail sales increasing at an annual rate of 8%. Claimant unemployment at 2.6% remains low while house price increases in Scotland have slowed to more realistic levels.
"The Business Monitor has recorded a slowing in the Scottish economy while business expectations for the next six months have fallen. Concerns surrounding credit availability and the costs of credit have risen. After above trend growth in 2007, the Scottish economy is facing reduced growth in 2008 in the range of 1.5% to 1.75%."
