Scottish business confidence rises in first quarter of 2018

Scottish business confidence grew in the first quarter of 2018, according to new research published today.

However, the Federation of Small Businesses (FSB) survey shows that firms north of the border remain substantially less optimistic than their UK counterparts.

The FSB Scottish Small Business Confidence Index rose to -17.8 points in the first quarter of 2018, up from -21.4 points in the previous three months.

Over the same period, the equivalent UK index climbed from -2.5 points to +6.0 points.

The index measures firms’ expectations regarding whether they expect business conditions to improve or deteriorate.

FSB Scottish policy convener Andy Willox said: “It is good to see Scottish business confidence recovering from the near record lows that we saw at the end of 2017.

“But Scottish firms are still gloomy about prospects, and far less optimistic than the average UK business.”

FSB’s research shows that more than half (55%) of the businesses surveyed identify the condition of the domestic economy as a barrier to growth.

Further, a net balance of 13.5% of Scottish small businesses reported a fall in revenues over the past three months.

More positively, a net balance of 4.2% of Scottish smaller firms expect income growth in the coming three months.

While the balance of firms looking to increase investment is down slightly on the last quarter, it still shows that a majority of Scottish firms are prepared to spend.

Mr Willox added: “If we’re to restore Scottish confidence and turn firms’ investment ambitions into reality, we need to do more to reassure our business community.”