Construction Had Strong End To Year

The construction industry experienced an extremely successful'' end to the year as it continues to recover from the recession, a business survey has revealed.

The sector, one of the most badly affected by the economic crash, reported an increase in contracts, investment and work in progress in the final three months of 2014, according to the Scottish Chambers of Commerce's quarterly report.

It found that the number of construction firms experiencing a rise in work in progress during the final quarter of the year was higher than at any time since 2007.

The number of firms reporting an increase in public sector contracts has also risen, now at its highest level for almost eight years, while investment levels are at a 10-year high.

Business confidence among construction firms has increased, while almost 40% of firms increased wages over the quarter.

Almost 500 firms in construction, financial and business services, manufacturing, retail and wholesale and tourism responded to the survey, carried out in collaboration with the University of Strathclyde's Fraser of Allander Institute.

Manufacturing, also badly hit by the recession, also experienced a successful quarter.

While growth in orders slowed, employment and investment levels remained strong, the survey found.

Retail and wholesale businesses reported an increase in sales for the first time in 2014 during the final three months of the year.

Meanwhile, business confidence among tourism firms increased compared with the same quarter in 2013.

Liz Cameron, director and chief executive of Scottish Chambers of Commerce, said: Strong performance from 2014 has helped Scottish businesses get off to a great start in 2015. With investment levels high across all sectors, there is much to look forward to as businesses seek to continue this impressive growth.

Scotland's year in the spotlight added a spring to our step but strong performances have not been limited to the tourism industry.

Construction, in particular, has experienced remarkable growth, with investment levels at a 10-year high and outperforming other sectors in this quarter.''

She added: As businesses move into 2015 with high expectations and increased optimism, political stability has never been more important.

With the EU serving as a key market for Scottish businesses, a future referendum on the UK's membership of the EU presents uncertainty for the business community. Business is clear - remaining a part of the EU is vital for Scottish business.''

Scotland Office minister David Mundell said the survey was further evidence that the UK's economic plan was working.

Going into 2015 Scotland's economy is expected to grow and build on two successive years of economic growth,'' he said.

This shows the conditions are being created for businesses to expand and they are benefiting from the large single domestic market, shared currency and economic stability which comes from being part of the UK.

With jobs being created and wage levels rising above inflation the signs are positive. We will continue with our long-term economic plan, ensuring we create opportunities for business and for hard-working Scots and their families across the country.''

Deputy First Minister John Swinney said: We welcome the latest survey from the Scottish Chambers of Commerce which reported a solid end to 2014 across all sectors of the Scottish economy.

The construction sector recorded a particularly robust performance in Q4 2014, with strong readings for private and public sector contracts, boosting optimism and seeing the reading for investment levels in the sector reach a 10-year high. Meanwhile in manufacturing, positive trends were reported in orders, employment, and investment.

Moving into 2015, these positive trends look set to continue as business optimism across sectors was positive heading into the new year, along with expectations for new business and exports.''