Greek crisis hits Scots business confidence
Business confidence in Scotland fell among the backdrop of uncertainty in the Greek and Chinese markets, according to accountants and business advisers BDO LLP.
BDO’s monthly Optimism Index has dropped to its lowest level - 103.9 - since November 2014, reflecting concerns that the crisis in Greece and a slowdown in China’s economy could affect business prospects in Scotland.
Martin Gill, head of BDO LLP in Scotland, said the overseas uncertainty was “playing on the minds of exporters”.
The Manufacturing Optimism Index plummeted to 98.5 from 103.4 and is now belong the long-term trend rate for the first time in two years.
BDO said the figures show little progress has been made in rebalancing the economy away from the service sector, and proved how global uncertainty can hamper the exports market.
Mr Gill added: “Our exports market is a key strength of the economy. We need to do all we can to maximise its potential in growing and re-balancing our economy as a whole.
“The Chancellor missed an opportunity to help exporters, and specifically those manufacturers that drive foreign trade, in last week’s Budget. The government must cut the tax barriers that exporters face as a priority. Introducing a VAT zero rating for suppliers to companies that export would be a good starting point.”