Firms more confident despite Brexit

Business confidence in Scotland took a strong upwards bounce over the last month.

The latest Bank of Scotland Business Barometer found overall business optimism lifted by 7% to 11% in November, with improving sentiment in the manufacturing and construction sectors helping to bolster the overall picture.

Companies were also more upbeat about their own business prospects during the period.

The improvements came despite the general economy and political uncertainty surrounding Brexit.

“The belief Scottish businesses have in their own prospects has been on a steady upward trajectory for the last three months and is helping lift overall confidence, which is encouraging,” said Fraser Sime, Bank of Scotland’s director for SME banking.

“While views on the economy are currently at a stalemate, this too is an improvement on a month ago and is reflective of the ongoing uncertainty of the broader UK economic landscape.

“Scottish businesses will be hoping for greater clarity in the coming months, which will help them to plan for future and hopefully reverse slowdown in recruitment plans.”

Across the UK as a whole, a net balance of 24% of businesses said they felt Brexit was having a negative impact on their expectations for business activity, a figure up four points on a month ago.

Lloyds senior economist Hann-Ju Ho added: “Following last month’s dip, with business confidence reaching its lowest level since August 2017, it is reassuring to see that business confidence has picked up, helped by stronger economic optimism and hopes of a Brexit deal.” the the

Fraser Sime of Bank of Scotland.