The chief economist at the Bank of Scotland has predicted that the Scottish economic recovery is going to slow down in Q3.
The Scottish economy has been on a bumpy road since emerging from the recession at the end of last year. Although the private sector has been growing for the past 13 months, economic growth actually stalled in the first quarter of this year.
Scottish manufacturers’ sentiment dropped 20 points to zero between quarters one and two according to the CBI index and the Consumer Confidence Index, compiled by Gfk NOP, registered -22 last month.
Those looking for new employment will be heartened by the news that the Bank of Scotland’s Report on Jobs showed an increased demand for permanent workers for the 8th consecutive month.
Growth in the leisure, tourism and travel sectors continues to outstrip growth in business and financial services. And the manufacturing industry is receiving more orders and they are rising faster than inventories, so manufacturers will need to increase the supply of finished goods if they are to keep up with demand.
However, it is thought that the recovery will slow down in the autumn months as widespread concerns continue over government spending cuts.
However, good news for the Scottish jobs market comes with the news that Hewlett Packard is to create 700 new IT jobs at its plant in Erskine, something which could benefit umbrella company IT contractors. The technology giant is setting up a service hub in Renfrewshire, partially aided by a government grant of £7 million.
Alex Salmond, the First Minister, is delighted at the news saying it is testament to the skilled workforce in Scotland that HP has decided to invest in the region and it also points to conditions improving in the IT sector.
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