Outlook dips in Scotland despite UK rise

Business confidence in Scotland fell eight points in March, bucking the nationwide trend for more positive sentiment, according to the Bank of Scotland.

The lender’s monthly Business Barometer slipped eight points to minus 3 per cent north of the Border this month, with Scots firms reporting lower confidence in their own business prospects as Brexit uncertainty drags on.

Across the UK, however, overall confidence climbed six points to 10 per cent as firms’ optimism about the economy and their confidence in their own prospects bounced back from February’s lows.

The report, which questions 1,200 organisations monthly to provide early signals about UK economic trends, found that overall confidence of businesses in the retail sector rose by eight points to reach a fourmonth high of 22 per cent.

Sentiment at manufacturing and construction firms dropped for a second consecutive month, to 10 per cent and 13 per cent respectively, suggesting the outlook in both sectors has dimmed since the start of the year.

Businesses in Yorkshire reported the highest levels of confidence in the UK at 21 per cent.

Fraser Sime, regional director for Scotland at Bank of Scotland said: “Despite firms starting to feel more confident as the landscape shows signs of levelling out, Brexit uncertainty is still at the forefront of minds across Scotland.

“We are, however, seeing businesses begin to take cautious steps towards growth, with plans to increase investment and recruit more staff.” 0 Sime: Businesses ‘taking cautious steps’ to growth