Survey gives hope to Scots firms

The survey said that order books had been up in the last six months

Scotland is weathering the current tough economic conditions, a business survey has said.

The latest Lloyds TSB Commercial report for the whole of the UK has concluded that optimism for the coming six months is at its lowest for 16 years.

However, in Scotland optimism is higher and order books appear healthy.

The survey is in contrast to a Scottish Chambers of Commerce warning that business confidence in some sectors had fallen to its lowest rate in 10 years.

Its report last week said that lower orders and higher costs were affecting companies across the board.

It is encouraging that Scotland appears to be weathering these difficulties better and indeed is more optimistic for the future Manus Fullerton Lloyds TSB Scotland

Lloyds TSB's Business in Britain survey, which gathers views from about 1,800 companies with a turnover of more than £1m, has been carried out twice a year since 1992.

Its index for July showed that the balance of UK firms expecting better rather than worse order books, profits and sales, over the next six months fell sharply to -8%, from +18% in January.

It said the downward trend was shared across all sectors, especially in construction and retail.

However, it added that there were significant variations in the results for different regions with Scotland showing a "more positive slant" with a figure of +2%.

In addition, +8% of Scottish firms reported an increase in sales as opposed to a UK figure of +6%.

Manus Fullerton, corporate and commercial director for Lloyds TSB Scotland, said: "As we are all aware, the UK as a whole is currently experiencing a challenging business climate.

"However, it is encouraging that Scotland appears to be weathering these difficulties better and indeed is more optimistic for the future with +22% of Scottish businesses reporting an increase in their order books for the last six months, compared to a UK figure of just +1%."