Survey finds Scots business optimism continues to improve

The survey indicated increased confidence in the construction industry, among other sectors

Scots firms are "remaining resilient" in the face of a fragile economy, according to an industry survey.

Scottish Chambers of Commerce (SCC) found business optimism continued to improve during the third quarter.

Confidence was higher in construction, manufacturing, financial and business services and tourism than a year ago.

But the survey also suggested record high employment levels were leading to recruitment difficulties, which could dampen growth and increase costs.

Neil Amner, chairman of SCC's economic advisory group, said: "For many of our industries, recruitment difficulties continue to sit above the long-term trend levels, exacerbated by the record high employment figures.

"Concerns continue to be raised by our members when it comes to seasonal workers and the attractiveness of the UK to EEA (European Economic Area) migrants during the uncertainty surrounding the Brexit negotiation process.

"Furthermore, members in more traditional industries have highlighted issues in attracting younger workers."

He added: "Businesses in sectors such as manufacturing must do more to re-imagine their workplaces to attract future talent, by focusing on increasing autonomy and flexibility in their working practices."

The survey suggested that Scottish tourism was boosted in the last quarter because of the weak pound

According to the survey, compiled in collaboration with the Fraser of Allander economic institute, tourism was a "stand-out performer" in the last quarter because of the weak pound's effect on foreign holidays.

But there was cause for concern in the continued decline in the retail and wholesale sector, with sales revenue and cash flow continuing to fall along with employment trends.

The survey was conducted between 21 August and 14 September, with 384 firms responding.