Scotland set for recession

Scotland is on the verge of recession with business confidence at a record low, according to a survey by the Scottish Chambers of Commerce (SCC).

The organisation found that 74% of respondents in construction were less confident than they had been in June, with a similar situation in the retail (65%), tourism (62%) and manufacturing (53%) sectors.

The number of construction firms now working at less than full capacity had risen from 30% to 70%, the research added.

"Trading conditions will be difficult over the next year, and easing the issues in the financial sector is critical to enable credit to be available for Scottish businesses," said Liz Cameron, chief executive of SCC.