Green shoots of growth for Scots business despite confidence drop in June

Business confidence in Scotland fell 15 points in June, according to new data published today by Bank of Scotland.  

Companies north of the Border reported higher confidence in their own business prospects month on month, up 18 points at 49 per cent, taken alongside their optimism in the economy, down 47 points at 5 per cent, to create the topline figure in the lender’s latest Business Barometer. Scotland’s is just under the UK-wide business confidence reading, which fell 10 points to 28 per cent.

The study, which questions 1,200 businesses monthly, also found that Scottish businesses flagged a range of growth opportunities for the next six months, including investing in their team (36 per cent) and entering new markets (27 per cent).

John Sinclair, founder and owner of Queensferry-based Craigie’s Farm, said the past quarter has been “challenging” for the business, but it has taken steps such as investing in a new shop and café fit. “While we continue to operate in a challenging climate, we’re optimistic that we’ll be able to weather these headwinds and continue to grow on the other side,” he added.

Riccardo Gallo, director at Edinburgh-based luxury property developer Gallo & Gallo Developments, flagged hurdles around, say, supply chains, but also said: “We are facing 2022 and beyond with optimism as we know there will be further opportunities for growth on the horizon.”

Fraser Sime, regional director for Scotland at Bank of Scotland commercial banking, said that while optimism regarding the Scottish economy has fallen, “confidence figures remain positive overall, and it’s great to see businesses planning to invest in their teams and market positions despite this exceptionally challenging economic climate”.