Outlook and appraisal [August 1985]

The most recent Scottish Business Survey reports a continuing rise in optimism among Scottish retailers and some cautious improvement for manufacturers. In line with the recent resurgence in consumers expenditure at the national level, Scottish retailers are enjoying considerable increases in sales volumes. The more cautious view among manufacturers probably reflects concern over the apparent reduction in the relative importance of export markets as a source of new orders and sales . Sterling's appreciation, to a level forecast late last year by the Fraser of Allander Institute, place s Scottish manufacturers under greater competitive pressure abroad (and domestically) and adds an element of fragility to the recovery of output. Scottish wholesalers and, particularly, construction companies are less optimistic about business conditions. In the latter case, the major cause continues to be the decline in orders from the public sector.