Scottish business confidence on the rise but concerns remain

Malcolm McPherson, senior partner at Addleshaw Goddard in Scotland. Picture: Renzo Mazzolini

The decisive general election result has provided some clarity for firms amid continued growth, albeit muted, according to the latest Scottish Business Monitor, produced in a partnership between the Fraser of Allander Institute and legal firm Addleshaw Goddard.

It comes on the back of activity over the final quarter of 2019 remaining positive but fragile, with the Scottish economy growing 0.3 per cent over the quarter and 0.7 per cent over the year.

The findings from the latest monitor, drawn from about 500 survey responses between mid-December and January, show more firms believing that the outlook for growth is “moderate”, and fewer believing it to be “weak”.

Businesses remain cautious about how Brexit trade negotiations could impact on them, with knock-on implications for investment, staffing and growth.

New business activity was found to be weaker than a year ago, but firms of all sizes are reasonably optimistic regarding expectations for future new business.

Malcolm McPherson, senior partner at Addleshaw Goddard, said: “This survey provides one of the first robust indicators of post-election economic conditions and is therefore a timely measure of business sentiment. The figures show that, while the election has provided a degree of clarity for business, firms remain uncertain of the future as EU trade negotiations loom.”

Scottish business confidence on the rise but concerns remain - Fraser of Allander