Business confidence in Scotland dipped by four points during October to 44%, according to the latest Business Barometer from Bank of Scotland.
Companies in Scotland reported lower confidence in their own business prospects month-on-month, down two points at 45%. When taken alongside their optimism in the economy, down six points to 43%, this gives a headline confidence reading of 44% – vs 48% in September.
Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as investing in their team, for example through training (43%), entering new markets (36%) and evolving their offering, for example by introducing new products or services (35%).
A net balance of 49% of businesses in Scotland also expect to increase staff levels over the next year; up 23 points on last month.
Overall UK business confidence dipped slightly in October to 44% – down three points from September’s 47%. This was driven by marginal falls in firms’ confidence about their own trading prospects (53% vs 56% in September) and the economy (35% vs 38% in September).
Firms’ trading prospects pulled back for the third consecutive month in manufacturing to 46%; the lowest level since March. There were also moderate declines of three points in both retail and services, to 51% and 57% respectively.
Expectations in construction bucked the trend, rising to 50%.
Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “This month’s fall in confidence reflects the wider UK trend.
“Scottish firms will still have their eyes on growth, and it’s encouraging to see businesses setting out clear plans to capitalise on new opportunities – from investing in their people to tapping into new markets.”
Hann-Ju Ho, senior economist at Lloyds Commercial Banking, added: “Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels.
“Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers will want to grow their workforce.“
Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.
This post was originally published on here
