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Last Updated: Monday, 6 February 2006, 00:28 GMT
Economy 'set to slow' over 2006
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The bank pointed to weakened consumer confidence
Scotland's economy is expected to slow down over the next year, analysts have predicted.

The Bank of Scotland said weak business and consumer confidence would counteract strong housing markets, share prices and lower interest rates.

The annual rate of growth was predicted to dip below 2% around the middle of the year.

However, the new housing market and share growth was expected to bring stability towards the end of 2006.

The Bank of Scotland's group economist Tim Crawford said: "After a period of relatively strong economic growth in 2004 and 2005, the Scottish economy is likely to see a modest slowdown this year as lower confidence levels result in slower spending growth by consumers and businesses."

But he added: "There are still signs that Scotland is faring better that the UK as a whole, with pessimism among businesses less widespread and new order levels rising."


SEE ALSO:
Scottish economy 'catches cold'
04 Jan 06 |  Scotland
Scottish economy 'outpacing UK'
23 Nov 05 |  Business
Economic growth 'to slow' in 2006
04 Nov 05 |  Scotland
Brown 'on thin ice with economy'
17 Oct 05 |  Business
Scottish economy set to cool off
24 Jul 05 |  Scotland


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