Official figures released last week that showed growth in
the Scottish economy all but stalled in the last quarter of 2015. That was
supported by two separate business surveys which have suggested the recent
downturn in the Scottish economy may be intensifying.
The Bank of Scotland's latest PMI which measures changes in
manufacturing and services output, posted 48.5 in March, falling from
February's 49.2. Any figure below 50 indicates economic contraction. Output in
the private sector declined last month, while the amount of new business
continued to fall. Purchasing managers reported "harsher business
conditions" in March.
Meanwhile, a survey by business advisers BDO suggested the
slowing services sector was "knocking the confidence" of Scottish
firms. It showed that business optimism had hit its lowest level in more than
two years. BDO's latest Business Trends Report also painted a gloomy picture,
suggesting that the slowing services industry was "taking its toll"
on the Scottish economy. Martin Gill, head of BDO in Scotland, said:
"These figures show that political and economic uncertainty is affecting
optimism among Scotland's businesses.”
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