Royal Bank of Scotland (RBS) says weak sterling has delivered a boost for Scottish exporters but also warns economic growth north of the border remains “fragile”.
The bank’s latest Scottish Business Monitor – the result of a Fraser of Allander Institute survey of more than 400 Scottish businesses – shows exports grew for first time in two years during the second quarter of 2017.
One-third (33%) of firms said the volume of new business rose, compared to fewer than one in four (24%) which reported a fall.
And a net 6% balance of businesses were confident this growth will gather momentum during remainder of 2017.
Firms in all parts of the country, including the downturn-hit north-east expected business volumes to grow.
RBS says a weak pound buoyed Scotland’s production and tourism sectors, boosting visitor numbers to the country as well as driving exports.
But it also highlights rising costs for many companies, driven by inflationary pressures, while capital investment has continued on a downward trend which started in late 2016.
Speaking on the eve of the report’s publication today, Fraser of Allander director Graeme Roy said: “Businesses reported a further improvement in activity, although levels of growth remain relatively fragile.”
