The Press and Journal (Aberdeen and Aberdeenshire)
Scottish firms more optimistic
Arelaxation of Covid restrictions boosted the mood of Scottish businesses during August, according to a monthly optimism barometer.
Bank of Scotland (BoS) said the monthly gauge jumped by six percentage points to 34% last month, thanks to a 20point surge in confidence about the nation’s economic prospects, to 43%, as more businesses were able to shake off some of the shackles of the pandemic.
But firms were less optimistic about their own outlook, reporting “marginally lower confidence” and, in turn, reducing the overall positive impact, the bank said.
Meanwhile, the overall confidence reading for the whole UK reached 36% – its highest level since May 2018. Scottish firms’ hiring intentions jumped 13 points, with 34% now planning to create jobs in the next 12 months.
Bank of Scotland Commercial Banking regional director Fraser Sime said: “With most of the Covid-19 restrictions easing in August, businesses across Scotland were able to return to normal trading for the first time in 18 months and are feeling optimistic about what this means for the economy.
“With confidence on the up and even more firms now planning on making new hires, the country is taking great steps towards recovery and growth.”
The bank’s monthly Business Barometer questions 1,200 firms throughout Britain and provides early signals about UK economic trends, both regionally and UK-wide.
Meanwhile, Scottish Enterprise (SE) has said it invested £568 million into the country’s economy during the 2020-21 financial year.
The economic development quango added it also kickstarted further investment worth a total of more than £1 billion and secured nearly 7,000 Real Living Wage jobs.
SE said its record funding supported more firms than ever before, including domestically focused and export-orientated businesses that were driving innovation and investment in “key assets”.
Linda Hanna, the group’s interim chief executive, said: “Scottish Enterprise is determined to play a key role in supporting Scotland’s economic recovery and deliver a future green economy that is fair for all.
“Our performance over the past year shows we are on the path to achieving that.
“Despite the challenges presented by the pandemic and Brexit, Scotland was able to maintain solid levels of investment – which has helped sustain and create employment for many thousands of people.
“Scotland is very much open for business and we look forward to working with our communities to develop further economic opportunities throughout the year ahead.”