Review of Scottish business surveys [November 2011]

Increasingly surveys of Scottish business, in common with UK and European surveys, have highlighted the continuing and deepening concerns as to the sovereign debt crisis in the Euro zone. These, together with growing fears of recession coupled with more signs of a slow down both in the UK and internationally, forecasts of lower rates of growth in 2012, consumer insecurity, pressures on household spending, rising energy costs and continued difficulties in obtaining finance have all contributed to a dampening of business confidence and activity. However, the Scottish Engineering Review (Q3) retained a positive outlook, as did the Oil and Gas UK Quarterly Index (Q2), albeit more modestly and with more reservations it noted the announcement of a substantial investment and ‘the Government’s apparent willingness to engage with companies to lessen the negative impacts may have reassured companies and resulted in a slightly more positive outlook’.