Scotland‘s economy experienced a growth by 1.3% in the second quarter of the year 2010, according to official figures. This is the biggest increase since the spring of 2006 and is a higher rate than the UK as a whole which grew by 1.2% in the same period.
Compared to other services, the best performing sector was construction which rose by 10.4% while services grew by just 0.3%.
However revised figures for the first quarter of this year show that the Scottish economy contracted by 0.2%.
Over the year to the end of June 2010 GDP fell by 1.7%. During this period, the service, production and construction services all recorded downward trends.
While the Finance Secretary John Swinney said, it showed the Scottish government was right to bring forward capital projects.
The Scottish economy is regaining its strength from the vacuum created by the recession which lasted a period over a year. The latest business survey reports have found that the growth is steady yet, weak and muted.
The surveyor Lloyd’s TSB Scotland Business Monitor says that the consumer and business confidence is still remains low, and this affects the growth of the economy in turn. By the end of 2009 the Scottish economy gained a growth of 0.3%.
Although the reports show that the export activity fell, it “remains positive”, with marginally more firms reporting an increase in exports than a decrease.
Only 26% of firms reported a rise in exports. While 24% reported a fall giving a percentage balance of 2% down from 12% in the previous quarter. And 38% of firms said they expected export activity to increase in the next six months.
But inflation still continues to put pressure on Scottish firms, with the net balance of firms reporting an increase in costs to those reporting a decrease. standing at 44% – up from 28% in the same quarter last year.