WEAKNESS in the Scottish services sector is giving increasing cause for concern.
Today’s Bank of Scotland survey shows this key sector of the economy declined in March. And Scottish Government figures showed last week that the services sector stagnated during the final quarter of 2016.
Scottish services firms, like those in other sectors, are operating in a tough economic climate. This situation has been exacerbated by the huge uncertainty created by the UK electorate’s vote to leave the European Union.
Across the UK, economic bright spots are few and far between as businesses wait for some clarity on Brexit negotiations.
Of some comfort in the Bank of Scotland survey is continuing manufacturing growth. Also heartening is reference by Scottish manufacturers to signs of “an upturn in the oil and gas sector”.
North Sea conditions obviously remain difficult, and it will be a long road back to better times, but glimmers of hope are a good enough place to start.
Royal Bank of Scotland’s recent survey signalled firms in the north-east, an area hammered by the oil downturn, were for the first time in a while forecasting growth.
So, while we should recognise the challenges ahead, it is important in such difficult times to see the possible reasons for some optimism.
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