Scottish business growth stalled during the first three months of 2018, according to new figures released today.
The research, carried out by the Fraser of Allander Institute for the Royal Bank of Scotland (RBS), revealed that the country has experienced the weakest volume of trade in two years.
Most regions across Scotland saw no increase in growth during the first quarter of the year, with the exception of the east central areas, which were boosted by the financial services sector.
But the report’s authors said companies remain optimistic, with the majority of firms preparing for a strong rebound over the course of the next six months.
The findings are contained within the latest RBS Business Monitor, conducted by the Strathclyde University-based independent economic research institute.
In the survey of more than 400 businesses, 32% of firms said turnover rose in the three months to March, while the same percentage reported that it fell.
The +0% balance compares with one of +10% in the final quarter of 2017. Inflationary pressures also continue. For the first three months of 2018, 59% said that costs rose.
RBS chief economist Sebastian Burnside said: “Scottish businesses are eagerly anticipating an end to the squeeze on household finances. Inflation was still eating away at people’s pay packets in the first quarter of this year, leading to businesses reporting stable revenues.
“But looking forward, there’s confidence that demand will pick up as price pressures start to ease.”