Scottish firms more gloomy on economy
Confidence across Scottish businesses is continuing to fall with optimism below that seen across t he wider UK, according to a report by Bank of Scotland.
The bank’s latest business barometer report showed confidence levels among Scottish firms fell seven points during October to - 28 per cent.
Although companies reported marginally higher confidence in their own business prospects, a downturn in optimism over the wider economy led to an overall fall. The report also showed an increasing number of firms expect to reduce staff levels over the next year.
Across the UK as a whole, overall confidence dropped s e v e n p o i n t s mo n t h - o n - month to - 18 per cent.
Fraser Sime, regional director at Bank of Scotland Commercial Banking, warned that tough trading conditions lie ahead for many.
“Covid- 19 restrictions continue to change in response to the pandemic, contributing to an environment of uncertainty which brings with it demanddampening effects. Unsurprisingly, this is having an impact on firms’ confidence.”
The North West of England had the highest confidence in October at - 2 per cent, followed by the East of England (- 8 per cent), and North East (- 10 per cent). Meanwhile, optimism fell 21 points in Yorkshire to - 29 per cent, making it the least confident UK region.
Confidence among service sector firms slipped back as those in the hospitality and arts and leisure dealt with the implications of further measures to tackle the pandemic. Manufacturing and retail logged modest improvements, up three points to - 15 per cent and up one point to - 7 per cent.