The economic recovery does not yet seem to have started in Scotland. According to the quarterly Lloyds TSB Business Monitor businesses have reported a ‘significant’ deterioration in trading for the first quarter of 2010.
Lloyds TSB Business Monitor found that 47% of companies reported that their turnover was down and 28% reported that their turnover was static. The new figures suggest that it is less likely that Scotland will have emerged from the recession along with the rest of the UK.
Professor Donald MacRae, chief economist of Lloyds Banking Group Scotland, said: "Hopes were high for a definite exit from recession and a vigorous recovery. However, this latest quarter shows a setback."
Scotland's severe winter weather may have been a contributing factor but it is unclear whether this is a one-off weather induced effect or a more persistent slowdown, Mr MacRae said.
Lloyds said there was an increase in the number of those surveyed that expect an increase in turnover in the next six months to the end of August.
The monitor's index showed a positive result at +2%, equalling the figure for the last quarter and distinctly up on the -28% of the same quarter one year ago.
Mr MacRae said this was a sign that Scotland's economic recovery might be "delayed rather than terminated".
Liz Cameron, chief executive of the Scottish Chambers of Commerce said: "Strong foundations are being laid for new world-class business in areas such as offshore renewable energy."
Greengates Builders Merchants Accrington, Lancashire hopes that the whole of the UK will soon have recovered from the recession that has hit everyone so hard.