Bussiness

Scotland leads the UK in business confidence during February

Published

9 months ago

February 29, 2024

Admin

Scotland leads the UK in business confidence during February

Scottish businesses recorded the strongest business confidence of any UK nation or region in February, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported stronger confidence in both their own business prospects (up 11 points to 68%) and the wider economy (up 19 points to 46%) month-on-month. Taken together, this gives a headline confidence reading of 56% (vs 42% in January).

Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as evolving their offering, including new products or services (49%), investing in their team (32%) and introducing new technology (22%).

A net balance of 26% of businesses in the country expected to increase staff levels over the next year, down 16 points on last month.

Overall, UK business confidence dipped two points in February to 42%, driven by softening confidence from firms in both their own trading prospects (49% vs 51% in January) and the wider economy (34% vs 37% in January).

However, companies’ hiring intentions increased to the highest level since May 2022, with 36% of firms intending to increase staff levels over the next 12 months;up three points on the month before.

There was a mixed picture for sectors this month. Confidence fell in manufacturing (nine points to 40%) and construction (seven points to 38%) respectively, although results remain higher than the same time last year.

In contrast, the dominant services sector was unchanged compared to January at 45%, exceeding all months of 2023 except for November. Retail confidence was broadly steady, dipping one point to 41%.