Scotland has ‘golden opportunity to tap into boom’

While business confidence in Scotland fell 16 points during September to 48%, according to the latest Business Barometer from Bank of Scotland, the country’s optimism was hailed.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 19 points at 47%. When taken alongside their optimism in the economy, which was also down 13 points to 49%, this gives a headline confidence reading of 48%, against 64% in August).

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Despite this dip, which mirrors the broader UK trend, it’s great to see that Scotland remains one of the most optimistic regions in terms of its economic outlook.

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“This optimism is well-deserved, given the array of events coming to Scotland this autumn, promising a boost for local SMEs. From Oban’s vibrant Royal National Mod to the Scottish International Storytelling Festival and St Andrews Golf Week where enthusiasts can tee off on the legendary Old Course, the season is brimming with opportunities. The fantastic news that Glasgow will host a version of the 2026 Commonwealth Games will bring even more global attention to our shores, too.

He also said: “Businesses have a golden opportunity to tap into this tourism boom. At Bank of Scotland, we’re eager to see how this temporary dip in confidence will rebound as businesses innovate and diversify to embrace the influx of visitors.”

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Although overall confidence fell this month, that fall was from a nine-year high and businesses remain positive about their own trading prospects. The joint-highest result this year could suggest that respondents still see a positive future for their own companies, which is also reflected in the largely unchanged employment figures.

“The more mixed picture for economic optimism points to some businesses maintaining a degree of caution. While we still expect economic expansion, it may occur at a slower rate than the first half of 2024.”

Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as entering new markets (37%), investing in their team, for example through training (35%) and introducing new technology, for example by implementing AI, automation or digitalisation (30%).

 The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.  

Overall UK business confidence in September dipped slightly, to 47% down from August’s 50%.