Scotland business

Business 'confident in short term' says report

Scottish banknotes Image copyright Thinkstock

A report on business trends has found signs of "encouraging economic prospects" for Scotland over the next six months.

The study by business advisers BDO LLP found optimism among manufacturers had reached a 20-month high.

It said confidence in the services sector had risen to a 14-month peak.

Martin Gill, head of BDO in Scotland, said: "The economy seems to be remarkably resilient both in Scotland and the UK as a whole."

Mr Gill said: "Businesses are surprisingly confident about the short term, encouraged by the opportunities our cheaper currency and a better-performing global economy have created.

"These have provided a much-needed short-term boost for our economy, particularly our manufacturers."

He added: "Government still has much to do in these uncertain times if the UK is going to stay on the right economic track."

Food and drink

Meanwhile, another report has found that Scotland's top private firms have suffered a drop in combined profits.

The annual Scotland Ltd report by financial and business advisers Grant Thornton assesses the commercial performance in the past year of Scotland's top 100 privately-owned limited companies.

It reveals total combined profits of £16.6bn in 2016, down from £20.8bn in 2015.

A total of 110,632 people are working for the top 100 firms, down from 116,284 in 2015.

But the success of Scotland's food and drink sector is reflected in the report, containing the highest share of businesses in the top 100.

James Chadwick, head of food and drink at Grant Thornton in Scotland, said: "The industry deserves the credit it is receiving worldwide. Hard work and serious collaboration has resulted in a complete turnaround in perceptions and revenues.

"However, there is no doubt that Brexit and other political uncertainties will have an impact. To an extent, we're holding our breath, waiting to see what might happen to exports and trading conditions."

Related Topics