ECONOMYConstruction activity hits 11 year declineNew figures from the Chartered Institute of Purchasing and Supply have revealed construction activity in the UK has fallen at its fastest rate for at least 11 year
s. The data is being seen as the latest sign the housing industry is heading for meltdown as the credit crunch starts to bite hard. Chief UK economist at Global Insight, Howard Archer commented: "Another day, another piece of dismal news relating to the UK economy. The construction sector looks to be in for an extended, difficult time." Director at CIPS Roy Ayliffe added: "Of all the sub-sectors cover in the report, housing bore the brunt of the credit crunch fallout, reflecting the steep decline in new house building. The labour market suffered its first major contraction after nearly two years of growth amid reports of significant lay-offs and redundancies. All these factors contributed to a dampening of confidence."
(The Scotsman)Factory exports upDespite inflation pressures and the continuing global economic gloom, Scottish manufactured exports rose in the first quarter of the year. New Scottish Government figures revealed exports sales of Scottish manufactured goods were up 2.3 per cent from the final quarter of 2007. Sales have been boosted by the overseas trade in the mechanical engineering sector which saw sales up 19.3 per cent with the next biggest increase coming in electrical and instrument engineering which enjoyed a 6.6 per cent rise. Chief executive of the Scottish Chambers of Commerce, Liz Cameron welcomed the figures: "At a time when the economic news has tended towards gloom and pessimism, these figures underline the fact that many Scottish businesses are thriving and taking advantage of the market opportunities which do exist." Peter Hughes, the chief executive of Scottish Engineering added: "The feedback I'm getting from our members is still optimistic and positive despite pressures. I'm encouraged by the figures."
(The Scotsman)Director of the Confederation of British Industry in Scotland, Iain McMillan was also pleased with the news: "It is heartening that exporters' performance perked up in the first quarter of this year, after what appears to have been a temporary dip in fortunes. This suggests that Scottish firms are proving remarkably resilient, despite stiff competition and significant cost rises. CBI Scotland's industrial trends survey is published later this month and we will be watching closely to see how firms' export performance, order books, and optimism fared during the second quarter of 2008."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESScottishPower signs Longannet coal dealScottishPower has signed the largest coal contract in Scottish history in a deal with Scottish Coal which could create more than 100 new jobs. The five year deal, which is likely to be worth up to £700 million, will see Scottish Coal supply fuel to the Longannet power station in Fife. Up to two million tonnes of coal per year will be supplied under the terms of the deal – Scottish Coal operates nine opencast mines across the central belt as well as planning to bring its mothballed Broken Cross site back into action. Deputy chairman of Scottish Resource Group which owns Scottish Coal, Brian Staples commented: "The coal we will supply is all mined in Scotland, and it will displace an equivalent amount of imported coal, to the benefit of Scottish employment and the Scottish economy. Scottish Coal will increase output to meet the tonnage requirements of the contract, which, in addition to protecting existing jobs, will create in excess of 100 jobs." First Minister Alex Salmond added: "The announcement that coal is to supply one of Scotland's major companies is a declaration of faith in coal as one of Scotland's key indigenous fuels and shows that coal is a fuel of the future and not the past."
(The Scotsman)Offshore safety review announcedThe House of Commons has announced a review of the safety of the offshore oil industry as the 20th anniversary of the Piper Alpha disaster approaches. The announcement was made after a minute's silence was held to mark the anniversary of the tragedy. A debate on the safety of the industry heard allegations that oil companies were delaying maintenance in order to capitalise on the surging oil price. Liberal Democrat MP Malcolm Bruce commented: "I am concerned over reported delays in maintenance of oil platforms. It would be dangerous if delays were occurring because producers were seeking to maximize production at current high oil prices, as has been suggested." However, director of health and safety at Oil and Gas UK, Chris Allen responded: "We cannot agree with the comments made by Malcolm Bruce that routine maintenance on our offshore platforms is being delayed and safety is being overlooked. In fact, the opposite is the case. Safety and asset integrity remain at the top of the industry's agenda."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comINDUSTRYTalks planned on Pringle closureScottish finance secretary John Swinney was yesterday set to hold talks with Pringle of Scotland after it emerged they are considering ceasing production at their Hawick factory. The knitwear group has suggested it may shift production away from the Borders, while maintaining its headquarters and marketing division in the town.
(BBC Scotland Online) Read all today's industry news from scotsman.comTECHNOLOGYLifescan benefits from Latin America salesLifescan Scotland, the Inverness based diabetic monitoring device supplier, has booked surging profits on the back of a sales expansion in Latin America. The largest private employer in the Highlands recorded pre-tax profits of £71.6 million for the calendar year 2007, up from £11.6 million in the year before. According to accounts lodged at Companies House, Lifescan has benefited from increased sales in Brazil and Mexico as well as an exceptional gain from a provision put in place to cover the cost of a multi-million pound product recall.
(The Herald) Read all today's technology news from scotsman.comPROPERTYTerrace Hill puts on brave faceGlasgow property group Terrace Hill has claimed its housebuilding in Scotland is remaining resilient despite the increasing economic pressure coming to bear on the sector. The group reported a crash in first-half profits with pre-tax numbers coming in at £4.4 million as compared to £12.7 million the year before. The company report said: "Its (Scottish building division Clansman's) sites are all situated in Scotland within a 40-mile radius of Glasgow where the house price to earnings ratio is well below the national average and employment levels remain stable. Our typical product is priced at £150,000 to £200,000 and targeted at middle market families who are not reliant on aggressive mortgage products. Therefore, we do not expect to experience as significant a dip in demand for these units as is anticipated across the broader UK market." Chairman Robert Adair added: "We expect capital values to fall further in the short term but we remain positive about the longer-term prospects for this sector. We anticipate a return to growth in capital values as liquidity improves and the demand and supply imbalance is further exaggerated by the rapid reduction in new home completions."
(The Herald) Read all today's property news from scotsman.com
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