Business confidence takes a hit in Scotland

Business confidence north of the Border cooled this month, according to the latest barometer from the Bank of Scotland, released today.

A net balance of 26 per cent of firms now expect activity to increase in 2018, 15 points lower than a month earlier, while optimism in the UK economy as a whole fell to 3 per cent.

As a result, businesses’ overall confidence tumbled 15 percentage points to 15 per cent.

Hann-ju Ho, senior economist at Bank of Scotland, said: “While it’s disappointing that overall confidence has fallen, firms in Scotland still expect their businesses to grow in 2018.

“The challenge for businesses now is that they make sure they are ready to boost investment again once growth opportunities become clearer over the next year.”

The business barometer questions around 1,200 businesses monthly and provides early signals about UK economic trends regionally and nationwide. Uk-wide, confidence was highest among businesses in the West Midlands.