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11/10/2012

Grim Outlook For Scottish Economy

A new survey has revealed a less than optimistic outlook for the construction, manufacturing, tourism and retail sectors in Scotland.

The Scottish Chambers of Commerce (SCC) has revealed a new report which shows the Scottish economy weakened more than expected over the summer.

Activity in construction remains depressed and manufacturing is experiencing "leaner times".

The SCC survey showed Scottish firms have lowered expectations of any kind of recovery over the next nine months.

There were also signs of a downturn in the tourism sector in the third quarter.

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SCC head of policy Garry Clark said: "Our latest survey suggests that many Scottish businesses experienced deteriorating business conditions in the third quarter and have revised downwards their expectations for the fourth quarter and first half of 2013.

"Once again, with few exceptions, demand remains weak and inadequate and the sense of an economy stagnating appears more widespread.

"The manufacturing sector reported, as expected, leaner times, with weaker trends in both domestic and export orders."

Scottish tourism has also suffered, with over 50% of hotels reporting a fall in visitors during the three months to the end of September.

Mr Clark blamed "the combination of poor weather, impact of the Olympics on tourism numbers, together with weak business demand and consumer uncertainty."

He said: "Governments need to take steps to bring forward and approve a programme of capital infrastructure improvements that will bring long-term benefits to the Scottish and UK economies."

(IT)

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