Scotland's economy showing signs of slowdown

Scotland is finally feeling the bite of the credit crunch with an economic slowdown more evident now than three months ago.

A Scottish Chambers of Commerce (SCC) survey shows business confidence has fallen in the past three months, with the outlook particularly gloomy for builders.

The SCC said the housebuilding sector was suffering acutely with builders reporting a downturn in domestic work.

SCC chief executive Liz Cameron told the Scotsman firms had to fight harder and think smarter to attract business.

“This survey clearly demonstrates that the lack of business confidence apparent in the early part of this year is now being translated into a general slowing down of the Scottish economy,” she said.

She said it wasn’t all doom and gloom with Scotland enjoying a positive rate of growth, robust employment and steady wage demands.