By Ian McConnell
TWO-thirds of firms in Scotland now anticipate economic growth will be weak, 40% expect to reduce operations this year because of higher energy prices, and 86% of those with vacancies are struggling to fill them, a survey reveals.
The quarterly Addleshaw Goddard Scottish business monitor, produced in partnership with the University of Strathclyde’s Fraser of Allander Institute and published today, also shows the most common concerns among businesses continue to be the cost of energy, the price and availability of inputs, and the availability of staff.
In the previous quarter, less than half of companies had projected weak Scottish economic growth and the proportion expecting to reduce operations because of higher energy prices was 33%.
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Of the firms reporting they currently had vacancies in the latest survey, 86% said they were finding them difficult or very difficult to fill. A lack of skills or experience was cited as the most common cause of this difficulty.
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Mairi Spowage, director of Fraser of Allander, said: “There has been a significant rise in the number of firms expecting to reduce their operations this year due to rising energy bills, and there is now a stark majority of Scottish businesses anticipating weak growth in the Scottish economy over the next year. Scottish firms continue to face challenges attracting and retaining staff, with wage expectations increasingly making it difficult for businesses to fill vacancies.”
She added: “It will be interesting to see how economic pressures and particularly wages impact businesses as we move into the second half of the year.”
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