Scottish Business Confidence Reaches Second-Highest in the UK

31 Aug, 2024

Scottish Business Confidence Reaches Second-Highest in the UK

Scottish business confidence surged by 13 points in August, reaching 64%, according to the latest Business Barometer from the Bank of Scotland. This marks the second-highest business confidence reading in the UK, following only the North East of England, which recorded 65%. The increase reflects a significant rise in Scottish companies' optimism about their own business prospects, which jumped to 66%, up by 21 points. Their confidence in the broader economy also improved, climbing to 62%, up five points from July.

Looking ahead, Scottish businesses are focusing on growth areas such as adopting new technology (44%), exploring new markets (42%), and investing in team development (35%). The Business Barometer surveys 1,200 businesses monthly and provides early insights into regional and national economic trends.

In contrast, overall UK business confidence remained steady at 50% in August, with slight increases in firms’ confidence in the economy to 47%. The survey indicated robust output expectations, particularly in construction, which saw a notable rise to 58%. However, confidence in manufacturing, retail, and services showed minor declines. Despite these variations, business confidence in Scotland highlights a strong and optimistic outlook for the region’s economic future.