Scottish business confidence falls in June, but remains above UK average

Business confidence in Scotland fell 14 points during June to 43%, 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 16 points at 44%. When taken alongside their optimism in the economy, down 11 points to 42%, this gives a headline confidence reading of 43% – versus 57% in May.

Looking ahead to the next six months, businesses in Scotland identified their top target areas for growth as investing in their team, for example through training (44%), introducing new technology (34%), and entering new markets (33%).

Overall UK business confidence fell nine points in June to a net balance of 41%. However, this was consistent with levels seen during the first quarter, before the sharp rise in May, and remained above the long-term average of 28%.

Results across the sectors were mixed in June, as three of the four sectors saw a decline in trading prospects. Construction fell 16 points to 42% and there were other notable decreases in retail (down 14 points to 35%) and services (down 11 points to 46%). Manufacturing however, bucked this trend, increasing by two points to 51%.