Rise In Turnover Of Scots Firms To Give Hope To Unemployed, Says Scottish Debt Arrangement Scheme Company

United Kingdom of Great Britain & N. Ireland -- Free-Press-Release.com-- Jul 26, 2011 -- The Scotland Business Monitor, released every quarter by Lloyds TSB, reported that optimism for an increase in turnover was relatively good with over a third of firms expecting a rise in the next six months. This is the highest level for three years and gives rise to optimism that Scotland has successfully avoided the double dip recession seen in the rest of UK.

Donald MacRae, chief economist for Lloyds TSB Scotland, said: "After five falls in seven quarters, the Scottish economy showed robust growth in quarter two last year of 1.3% followed by more trend-like growth of 0.5% in quarter three.”
The number of new permanent positions has increased at its greatest rate since the end of 2009, with much of this in the construction and engineering sectors, but this improvement will have to continue steadily to make a significant change to the unemployment figures.

The rise is optimism is very encouraging considering the Scottish economy was hit hard by the severe weather last winter, with well over half of all firms – production and service - reporting turnover falls in December, January and February. Much of the optimism appears to be from production firms rather than service firms, with forty percent that responded expecting their turnover to increase compared to only 26% of service firms.

A Scottish Money Advisor from Debt Arrangement Scheme Scotland, said: “This is good news for Scotland’s unemployed, especially the young, as rises in turnover are likely to lead to new jobs. Citizens Advice Scotland (CAS) reported last year that many young people aged 16-24 are unemployed, rely on benefits and are building up debt. Almost 1 in 10 young people now claim Jobseeker’s Allowance compared to 1 in 20 people of working age, and this lack of jobs has created a ‘lost generation’ of youngsters who have few prospects for the future. The revitalisation of the economy that would occur if business forecasts prove to be correct would be a welcome boost to the economy for every Scottish person.”

A total of 420 Scottish firms took part in last quarter’s Lloyds TSB Scotland Business Monitor survey, which was run by the Allander Institute at Strathclyde University. Overall the businesses felt their progress was generally negative, but their expectations for the next six months were very different, even though economists are warning Scotland to be wary.

"Given the effect of the severe weather of last December, growth in the last quarter of 2010 is expected to be around zero or even negative,” added Donald. “Consumer confidence remains positive but at low levels. Consumer spending is constrained by this low level of confidence backed by increasing levels of retail price inflation eroding disposable income, which is already constrained by low earnings growth.”

# # #

Debt Arrangement Scheme Scotland
David Baddeley
0800 043 2027
http://www.debt-arrangement-scheme.com