SCC Survey – Most Scottish Firms Report No Improvement In Finances During First Quarter

The latest findings from a leading Scottish business survey by the Scottish Chambers of Commerce (SCC), confirm that the beginning of 2023 provided a welcome respite for some sectors of the economy more so than others, after a difficult end to 2022.

However, this comes from a very weak base, and while confidence has generally increased, this is yet to translate into an overall improvement in business conditions. Most Scottish SMEs still report no improvement in sales, cashflow, and investment.

The survey also indicates that many businesses are still struggling in the face of rising cost pressures and high inflation, as well as continuing to face challenges regarding access to the labour market.

Stephen Leckie, President of the Scottish Chambers of Commerce said:

“The beginning of 2023 has seen improvement in the prospects of some sectors of the Scottish economy, in line with recent economic data that has been more positive than previously expected.

“While we see the construction, services, and manufacturing sectors reporting better results, we must note that this comes from a very low bar set by the past few years of constant and seemingly never-ending challenges for business. We also see the retail and tourism industries continuing to struggle in the face of these headwinds.

“The survey also indicates that many of the big challenges that faced firms in 2022 are continuing to persist in 2023. Cost pressures continue to rise alongside concern about energy bills, inflation, labour shortages, alongside growing uncertainty in the global economy.

“There is a large in-tray of issues for the new First Minister and his cabinet to work with businesses to address, to help put the Scottish economy back onto a path towards unlocking growth and investment.

“We are ready to work with government to bring care and focus onto these pressing challenges for the economy, that must come with agile and decisive action that supports firms through the uncertainty ahead.”

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