Tag: Bank of Scotland

Bank of Scotland Business Barometer: Scottish business confidence leaps in June

SCOTTISH BUSINESS CONFIDENCE LEAPS IN JUNE

  • Business confidence in Scotland rose 28 points during June to 50%
  • Scottish businesses identified their top target areas for growth in the next six months as evolving their offer (41%), investing in their team, and entering new markets (both 34%)
  • Overall, UK business confidence rose nine points to 37%, with all regions reporting a positive confidence reading

Business confidence in Scotland rose 28 points during the beginning of June to 50%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 22 points at 52%. When taken alongside their optimism in the economy, up 34 points to 48%, this gives a headline confidence reading of 50%.

Scottish businesses identified their top target areas for growth in the next six months as evolving their offer (41%), investing in their team, and entering new markets (both 34%).

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

A net balance of 49% of businesses in the region expect to increase staff levels over the next year, up 20 points on last month.

National picture

Overall, UK business confidence increased by nine points to 37% in June, with all regions reporting a positive confidence reading. Eight out of 10 regions reported a higher confidence reading than in May.

The East Midlands reported the highest levels of business confidence at 52% (up 35 points on last month), the highest level of any UK region or nation this year.

Scotland reported the second highest confidence reading, followed by the North East at 47% (up 12 points month-on-month) and Yorkshire at 45% (up 26 points month-on-month). London and the South West were the only regions to report a decline in confidence. In London confidence fell by 10 points to 33%, while in the South West it fell by one point to 29%.

Business confidence for firms in the service sector rose to 37% (up 11 points), the highest seen since February 2022. With the recent spell of good weather and a reduction in food and energy prices, businesses in leisure and hospitality may be able reap the rewards in the months to come.

Manufacturing firms’ confidence also increased to its highest level since early 2022, rising to 50% (up 10 points) to outperform other sectors.

Chris Lawrie, area director for Scotland at Bank of Scotland Commercial Banking, said: “It’s great to see confidence among Scottish firms on the rise. Many businesses will be looking forward to a busy summer period, especially with large events like the Edinburgh Fringe on the horizon which will no doubt bring excellent trading opportunities for the hospitality and leisure industry.

“It’s encouraging to see leadership teams looking to evolve their offering and making plans to invest in their colleagues too. This should go hand in hand with carefully managed working capital to ensure that businesses have the financial headroom to go after the growth opportunities that come their way.”

Paul Gordon, managing director for SME and Mid Corporates at Lloyds Bank Commercial Banking, said: “The boost in confidence and hiring intentions is a welcome sign that businesses are managing well in what continues to be a challenging environment.

“It’s particularly pleasing to see that for both services and manufacturing, two sectors which have been hardest hit in recent years, there is real optimism for trading prospects and growth. However, wage pressures continue to be above pre-pandemic levels and firms need to be mindful of this and ensure that costs are evenly distributed and managed closely.”

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “It’s encouraging to see business confidence rebounding following last month’s five-point dip to 28%. Trading prospects and optimism have seen a resurgence this month with overall confidence up in all but two of the twelve regions of the UK, which shows positive prospects across the wider economy.

“However, interest rate rises and cost pressures are still felt by many and we await to see the impact of the latest 50 basis point rise in the base rate. Meanwhile, expectations for average pay growth, although down slightly this month, appear to have picked up compared with the start of the year and remain elevated relative to pre-pandemic levels.”

Coronation weekend boosts spending for Scottish businesses

Bank of Scotland data from customer spending habits in the food and drink sector during the week of the King’s Coronation 2nd – 8th May shows: 

·         A 10% increase in spending in Scottish firms including pubs, bars, cafés and restaurants compared with the previous week 

·         The Coronation generated bigger consumer spending levels in Scotland than the Queen’s Platinum Jubilee in 2022 (10% vs 3% respectively) despite the Coronation only being a three-day compared to the four-day Jubilee  

·         Across the UK biggest increase in business activity was seen by restaurants (12% increase) followed by supermarkets and grocery retailers (nine percent increase)  

The Coronation Bank Holiday weekend led to a flurry of consumer spending in Scotland, helping to boost business activity.  

Consumers in Scotland increased their spending more than any other UK nation or region as business reported a 10% rise in trading activity over the bank holiday compared to the previous week. 

Data scientists at Bank of Scotland found the additional Bank Holiday for the King’s Coronation increased Scottish spending by a greater amount than the Queen’s Platinum Jubilee four-day-weekend last year which drove a 3% increase in purchases across firms.  

Restaurants in the UK received the biggest boost in business activity, with customers spending 12% more than in previous weeks, followed by supermarkets and grocery retailers who saw a nine per cent increase. 

Day by day analysis of the UK shows that the biggest increase in spending was restaurants on Sunday and Monday by 37% and 51% percent respectively.  

Chris Lawrie, area director for Scotland at Bank of Scotland Commercial Banking: “It’s fantastic to see the boost the extra day’s bank holiday has given to businesses, many of which will be hoping for a similar surge in demand for the next bank holiday and into the summer.  

“Managing cash flow and juggling busy periods can be challenging for firms, and for larger businesses leveraging tools such as invoice or asset-based lending can be useful to unlock capital when needed, enabling them to seize the opportunities that come their way.

“As well as wisely investing their hard-earned additional revenue into training and overall efficiency gains which will benefit the business in the long term.” 

Bank of Scotland Business Barometer: Business confidence continues to rise

Lloyds Bank’s Business Barometer for March 2023 shows:

  • Business confidence in Scotland rose 24 points during March to 38%
  • Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 34 points at 41%
  • Overall UK business confidence in March reached its highest level since May last year, with eight out of 11 regions and nations reporting higher levels of confidence than February  

Business confidence in Scotland rose 24 points during March to 38%, according to the latest Business Barometer from Bank of Scotland Commercial Banking – conducted between the 1st – 15th March ahead of the Chancellor’s Spring Budget on Wednesday 15th March.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 34 points at 41%.  When taken alongside their optimism in the economy, up 15 points to 35% this gives a headline confidence reading of 38%.

Scottish businesses identified their top target areas for growth in the next six months as evolving their offer (37%), entering new markets (35%) and investing in sustainability (30%).

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

A net balance of 33% of businesses in the region expect to increase staff levels over the next year, up 34 points on last month.

Overall UK business confidence climbed 11 points to 32% in March, with firms reporting their highest confidence levels since May last year. 

On average, firms felt positive about their own trading prospects with 39% of firms expecting business activity to increase in the next 12 months, up eight points on last month and 25% said they would increase staff levels by this time next year, up five points month-on-month.

Every UK region and nation had a positive confidence reading in March, with eight out of 11 regions recording a month-on-month increase in confidence.

For the second month in a row the West Midlands reported the highest levels of business confidence at 48% (unchanged month-on-month), followed by Scotland (up 24 points), London (up 20 points), and the North East (up two points) all at 38%. 

Chris Lawrie, area director for Scotland at Lloyds Bank Commercial Banking, said: “Scottish businesses are feeling confident about the months ahead and It’s great to see firms’ optimism in the overall economy is at its highest level since May 2022.

“With the winter months behind us, firms will likely be preparing for the brighter – and often busier – summer period. Businesses that keep a close eye on cash flow and manage their working capital will be best placed to capitalise on opportunities. We’ll continue to be by the side of Scottish businesses to help steer them through what we hope will be a strong spring and summer season.”

There was a broad rise in business confidence across the sectors, particularly in construction (47% up 28 points) and manufacturing (37% up ten points) both at a ten-month high and retail (32% up 11 points) the highest since February 2022.

Paul Gordon, Managing Director for Relationship Management, Lloyds Bank Business & Commercial Banking, said: “It’s great to see economic optimism as well as trading prospects at a ten-month high.

“We can see from the data that this could well be down to a combination of a less obstructive hiring environment and the longer-term wage pressures trending downwards. 

“As we look ahead, growth and investment must be the watch words for businesses across all sectors. This will help build future resilience against an uncertain economic landscape.”

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Business confidence has seen a surge this month with economic optimism and trading prospects bolstering firms.

“With hiring intentions improving, we may see employment growth picking up in the coming months. Tentative signs of easing wage pressures suggest that businesses’ difficulties in finding staff may have started to ease.

“Although the measures in the Budget were widely trailed, it is yet to be seen what the full impact of the Chancellor’s announcement, along with the surprise rise in inflation and recent increase in interest rates, will have had on business confidence.”

Spring Budget: Chancellor to set out ‘Budget for Growth’

  • Chancellor sets out next stage of the Government’s plan to halve inflation, grow the economy and reduce debt.
  • Building on the stability he gained from Autumn Statement, Jeremy Hunt will set out next steps to drive economic growth across the UK.
  • Plan will help ease the cost of living, remove barriers into work to boost incomes, drive business investment, and support new, high-growth industries of the future.

Chancellor of the Exchequer Jeremy Hunt will unveil the next phase of the Government’s plan to halve inflation, grow the economy and reduce debt in his Spring Budget today.

In his first Budget speech as Chancellor, Jeremy Hunt is expected to build on the stability gained at the Autumn Statement, with new measures to support families and businesses with the cost of living, before setting out an agenda to grow the UK economy.

The Chancellor of the Exchequer, Jeremy Hunt is expected to say: “In the Autumn we took difficult decisions to deliver stability and sound money. Today, we deliver the next part of our plan: a Budget for growth.

“Not just growth from emerging out of a downturn. But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people … all whilst making our country one of the most prosperous in the world.

“Today I deliver that by removing the obstacles that stop businesses investing; tackling the labour shortages that stop them recruiting; breaking down the barriers that stop people working and harnessing British ingenuity to make us a science and tech superpower.”

The Government is already protecting struggling families with one-off payments worth £94 billion. After a decade of reforms, people on low incomes can now earn £1,000 a month without paying tax or national insurance thanks to rises in tax thresholds. This has helped to lift two million people out of absolute poverty, after housing costs, including 400,000 pensioners and 500,000 children.  

The Chancellor is expected to announce fairness reforms to energy bills, bringing the bills of families on prepayment meters in line with average direct debit energy bill under the Energy Price Guarantee. This will enable four million families to save £45 a year on their energy bills from July. 

He will also announce his plan to go even further with and ambition to get hundreds of thousands more people into work. Support will focus on disabled people and those with long-term health conditions, parents, the over 50s, and people on Universal Credit. The changes are also expected to encourage benefit claimants to move into work or increase their hours with increased sanctions enforcement and Work Coach support, and childcare costs on Universal Credit to be paid up front.

The Chancellor is also expected to reject the narrative of decline, champion the successes the UK has achieved over the past decade, with a promise to build on the country’s competitive advantages to spread wealth and opportunity everywhere.

UK BUDGET MUST REVERSE TORY COST OF LIVING CRISIS

TOMMY SHEPPARD MP AND DEIDRE BROCK MP: SLASH ENERGY BILLS AND PUT MONEY BACK IN PEOPLE’S POCKETS

The SNP has said “the number one priority for the UK budget must be to put money back into people’s pockets” – warning the Tories can’t continue to hammer household incomes.

Ahead of today’s budget, Tommy Sheppard MP and Deidre Brock MP have urged Jeremy Hunt to deliver a comprehensive package to boost household incomes and economic growth. The MPs for Edinburgh East and Edinburgh North & Leith have challenged the Chancellor to deliver the SNP’s five-point plan:

  1. Saving families £1400 on energy bills – by cutting the Energy Price Guarantee to £2000 and maintaining the £400 Energy Bill Support Scheme to the summer.
  2. Raising public sector pay and benefits by CPI – putting money into the pockets of millions of workers and delivering Barnett consequentials for Scottish spending.
  3. Scrapping Tory plans to raise the pension age to 68 and reinstating the Triple Lock – so no one must struggle in old age.
  4. Re-joining the European Single Market – to boost economic growth and halt the multi-billion pound long-term damage being caused by Brexit.
  5. Investing in green growth – by competing with EU and US subsidies to attract green investment.

In addition to the headroom identified by the IFS, and the billions of pounds saved as a result of the falling wholesale price of gas, the SNP is calling for the Chancellor to scrap non-dom tax status, tax share buy backs, and expand the windfall tax, which would raise billions more to fund cost of living support for ordinary households.

Commenting, Edinburgh East MP, Tommy Sheppard said: “The number one priority for the UK budget must be to put money back into people’s pockets – and reverse this Tory-made cost of living crisis.

“Scotland is a wealthy, energy-rich country but families are being fleeced by Westminster. By refusing to act, the Tories are showing why Scotland needs independence, so we can escape Westminster control, re-join the EU, and build a fair and prosperous economy.

“Families are sick to the back teeth of being ripped off by the Tory government. Instead of hammering household incomes, the Chancellor must save families £1,400 by slashing energy bills and deliver a comprehensive package of support.

“The SNP’s five-point plan would reduce bills, raise incomes and boost economic growth, at a time when many families are struggling to get by. With energy companies making record profits and the wholesale price of gas falling, there is no excuse for failing to act.”

Edinburgh North & Leith MP, Deidre Brock, added: “The SNP Scottish Government is doing everything it can with limited fiscal powers, including delivering the Scottish Child Payment, higher energy bill support, and higher public sector pay.

“The UK government must finally step up to the plate and use its reserved powers to introduce a Real Living Wage and raise public sector pay and benefits by CPI. In doing so, it would raise the incomes of millions of workers and deliver Barnett consequentials which would benefit Edinburgh and Scotland.

“This UK Budget is all about choices. Instead of making families in Edinburgh pay for Westminster failure, the Tories must fund support by scrapping non-dom tax status, expanding the windfall tax and taxing share buy backs, which would raise billions.

“And if we are serious about delivering economic growth and reversing decline, the UK government must re-join the European single market and properly invest in green energy.

“Scotland is suffering the consequences of Westminster control. The Tories trashed the economy with Brexit, austerity cuts and thirteen years of mismanagement. And with the pro-Brexit Labour Party becoming a pound-shop Tory tribute act, it’s clear independence is the only way for Scotland to secure the real change we need.”

Budget predictions – Bank of Scotland

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “Business confidence in Scotland rose in recent months and, after business rates were frozen in a bid to help smaller businesses in the Scottish Budget, firms will be looking to the Chancellor to continue supporting long-term, sustainable growth and encourage higher levels of productivity.  

“Growing the economy is key and the Budget is an opportunity to bring further stability and encourage investment in future growth. The Chancellor could show that he can help meet these ambitions by increasing capital allowances and providing the greater certainty and support businesses need to invest in a more high-tech, low-carbon economy.” 

Uptick in Scottish business confidence

Bank of Scotland Business Barometer

  • Business confidence in Scotland rose four points during February to 14%
  • Scottish businesses identified their top target areas for growth in the next six months as hiring new employees (43%), introducing new technology (31%) and evolving their offer (30%)
  • Overall, UK business confidence remained positive in February at 21% and 31% of firms reported feeling positive about their own trading prospects for the year ahead

Business confidence in Scotland rose four points during February to 14%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down one point at 7%.  When taken alongside their optimism in the economy, up eight points to 20%, this gives a headline confidence reading of 14%. 

Scottish businesses identified their top target areas for growth in the next six months as investing in their team (43%), introducing new technology (31%) and evolving their offer (30%).

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

A net balance of 1% of businesses in the region expect to reduce staff levels over the next year, down 15 points from January when a net balance of 14% of businesses planned to create new jobs.

Overall UK business confidence decreased by just one point to 21% in February. Firms remained positive about their own trading prospects with a net balance of 31% expecting business activity to increase in the coming 12 months.

Firms also reported plans to create new jobs with 20% of businesses intending to make new hires over the next 12 months – up three points from January.

All UK regions and nations reported a positive confidence reading in February, with six areas reporting a month-on-month increase in confidence. Of those, the West Midlands (up 30 points to 48%) and Yorkshire and Humber (up 22 points to 34%) saw the largest monthly increases.

Chris Lawrie, area director for Scotland at Lloyds Bank Commercial Banking, said: “After a dip in confidence in January, it is good to see that businesses are once again feeling optimistic about their own trading prospects and the wider economy.

“However, rising costs, supply chain challenges and skills shortages are still affecting several key sectors across the country. As firms grapple with these challenges it’s easy for attention to pull away from seizing opportunities for growth.

“Firms that keep a close eye on cash flow and manage their working capital will be best placed to take on any unforeseen challenges and go after prospects in the months ahead.”

Retail confidence bounced back, rising for the first time in three months to 21% (up 14 points), led by improvements in both trading prospects and economic optimism. However, business confidence fell in construction (down eight points to 19%) and services (down five points to 20%) although this remains higher than in the latter part of 2022.

Scotland only: Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:  “While overall confidence has dipped slightly, it’s encouraging to see businesses backing their own trading prospects. This may well be down to the easing of cost pressures as we see the prices of commodities such as oil and energy coming down. At the same time, with pay expectations easing, this may be giving businesses the boost they need to weather the rest of the year.”

“As we move further into 2023, focusing on growth and investment should be key for businesses across the sectors, while ensuring that margins and cash flow are also prioritised.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Business confidence has lost a little momentum this month, following the strong gains seen recently. Firms are feeling more cautious about the wider economy. However, confidence in their own trading prospects continues to strengthen, helped by tentative signs that wage and other cost pressures may be reducing.

“While inflation appears to be tapering, pressures on consumers will need to ease further to help make it a more stable environment for businesses to operate.”

Bank of Scotland – Christmas business barometer

A THIRD OF SCOTTISH BUSINESSES IN BETTER “ELF” THIS CHRISTMAS ! 

Bank of Scotland survey shows: 

  • 33% of businesses expect higher revenues this Christmas compared to last year 
    • 23% of businesses expect to see increased demand this seasonal period
    • Only one in ten (10%) of retailers say they are completely ready for Christmas trading
  • However, a fifth (20%) of firms said they do not feel fully prepared for the festive trading period 

Despite high inflation, rising energy prices and a tighter labour market, 33% of firms in Scotland expect this Christmas trading period to be merry and bright compared to last year, according to the latest insight from the Lloyds Bank Business Barometer.

Those predicting a bumper festive period cited having more time to prepare (25%), while increasing customer demand was cited by 22% of firms as they felt less affected by Covid restrictions due to the Omicron variant last year. Those expecting a worse Christmas trading period said they were struggling with increased costs of doing business (10%). 

Almost three-quarters of businesses surveyed said that Christmas was important for their future prospects (74%), but only one in ten (10%) said they felt completely prepared for Christmas. Meanwhile, a fifth (20%) said they are not yet fully prepared for the festive period. 

When asked what could help firms prepare more effectively, 30% said they wanted more support with rising costs, with 23% saying that better access to their supply networks would help. Skilled workers were also high on businesses’ wish lists, with 25% saying access to more skilled staff would boost Christmas trading.  

Chris Lawrie, area director for Bank of Scotland, said: “This year has been marked by highs and lows but it’s encouraging to see many firms are in good spirits about trade over the festive period.  

“With no restrictions in place, the opportunities for businesses are clear but we know that some aren’t fully prepared for this Christmas trading period.  It’s essential that businesses put plans in place now to carefully manage cashflow and make the most of what will be a busy end of the year.” 

Dentists secure £650,000 to open practice of the future and create jobs

Two Edinburgh-based dental practices – one NHS and one private – have been acquired as part of ambitious plans to modernise and expand their treatment offerings, thanks to support from Bank of Scotland.  

The businesses will offer implants, adult orthodontics and facial aesthetics with the goal of becoming a referral hub for specialist work from other dentists. To expand the types of dentistry on offer they have already employed an additional 6 members of staff.

La Belle Court Dental & Implant Clinic and Q Court Dental Studio, based in the same building, were purchased in August 2022 by Dr Shahad Al-Dabbagh and Dr Nadine Al-Farhan. 

After meeting at university, the women both worked in various dental practices around Scotland but wanted to own their own business that could offer specialist treatments including digital dentistry, smile makeovers, adult orthodontics and facial rejuvenation treatments such as fillers and anti wrinkle injections.

Shahad and Nadine approached The Bank of Scotland, securing a £650,000 funding package that enabled the businesswomen to purchase the two practices. The support is also funding specialist machinery including an ITERO Scanner, which takes accurate scans of the natural tooth in seconds, reducing the length and number of appointments needed. Also a CBCT machine that can produce precise 3D images of a patient’s mouth was also bought. 

As part of the acquisition, the practice is introducing improved services including same-day appointments for complex treatments.  The business is also updating the interiors including a beauty therapy room, waiting area and bathrooms. The pair also plan to change the layout of the building so they can have more surgery rooms, expanding the number of appointments on offer.

Shahad Al-Dabbagh, co-owner of Sana Corporate said: “We are delighted to open our doors and showcase the future of dentistry to the public.

“The support of Bank of Scotland has allowed us to bring our vision to life. We wanted to create somewhere that offered more than regular d

ental appointments; a place for people to relax in our Therapy Suite and be confident with their smiles with our skilled clinicians.

“We endeavour to grow our dedicated team over the next few years to provide the best dental care and want to continue expanding treatments for our patients across Edinburgh and beyond. The sky really is the limit with two working mothers at the helm!”

Scott Beaton, relationship director at Bank of Scotland commented: “We are proud to support businesses like Q Court Dental Studio and La Belle Court Dental & Implant Clinic.

“Shahad and Nadine have taken their impressive dental experience a step further by creating a space that offers more of what their customers want. It’s a great example of how businesses are evolving alongside customer needs and trends to secure success. 

“We will remain by the side of businesses across Scotland as they work to reach their full growth potential.”

Business confidence in Scotland is highest in the UK

Bank of Scotland Business Barometer for November 2022 shows:   

·       Business confidence in Scotland rose 19 points during November to 24% – the highest reading since July 2022 and highest of all UK nations and regions 

·       Scottish businesses identify top growth opportunities as investing in their teams (43%), evolving their offering (40%) and introducing new technology (35%) 

·       Overall UK business confidence remains robust at 10% with all regions and nations reporting a positive confidence reading apart from the South East 

Business confidence in Scotland rose 19 points in November to 24% – the highest reading since July 2022 and highest of all UK nations and regions, according to the latest Business Barometer from Bank of Scotland Commercial Banking.  

The survey was conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Thursday the 17th November. 

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up eight points to 30%.  When taken alongside their optimism in the economy, up 30 points to 16% this gives a headline confidence reading of 24%.  

Scottish businesses identified their top target areas for growth in the next six months as investing in their teams (43%), evolving their offering (40%), and introducing new technology (35%).   
 
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 
 
A net balance of 8% of Scottish businesses expect to increase staff levels over the next year, down eight points on last month. 
 
Overall UK business confidence fell five points during November, but remained positive at 10%. Firms’ outlook on their future trading prospects was down two points to 25%, and their optimism in the wider economy dropped four points to -2%. Despite a seven-point dip, UK businesses remained positive about hiring intentions with 14% of firms aiming to create new jobs in the next 12 months. 

All UK regions and nations, apart from the South East, reported a positive confidence reading in November, with seven recording a month-on-month increase in confidence. Of those recording an increase in confidence, Scotland, Wales (up 12 points to 17%) and the South West (up nine points to 5%) saw the largest monthly changes. 

Chris Lawrie, area director for Bank of Scotland, said: “It’s encouraging to see confidence among firms in Scotland reach the highest in the UK, as they show their trademark resilience in the face of numerous headwinds and a challenging economy. 

“As firms look to the year ahead, they’ll have a close eye on managing rising prices, and keeping a close eye on working capital will help firms as they try to mitigate the effects of inflation on their operations. We’ll be by their side to ensure they are in the best position possible in the months ahead and they look to capitalise on opportunities for growth.” 

Business confidence in retail increased to 15% (up from 9%), perhaps reflecting a renewed confidence in trading prospects ahead of the festive season. However, business confidence in the manufacturing sector fell for the sixth month in a row, to 4%, down 9 points, the lowest confidence level since early 2021. 

The construction sector held gains made in October, remaining unchanged at 20%, although this level still remains weaker than in the first half of the year. 

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Business & Commercial Banking, said: “The fall in confidence shows just how tough it is for businesses right now. 

“Pressures from rising costs continue and businesses are starting to feel the burden of higher energy bills. However, the tentative easing of wage expectations should provide some solace although we know the labour market is still tight. 

“We would encourage businesses to keep a keen eye on their costs and cash flow as we head into the festive period. If any businesses are struggling, we would encourage them to reach out for support. At Lloyds Bank we remain by the side of businesses to help navigate these challenging times.” 

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Given the recent political and economic landscape, it comes as little surprise that economic optimism and business confidence have fallen this month.

“Pay growth expectations remain high by historical standards, which could signal ongoing difficulties ahead for businesses to fill vacancies.

“Looking ahead, it will be interesting to see if the clearer policy picture provided by the Autumn Statement will lead to business confidence moving in a more positive direction as we go into 2023.” 

Bank of Scotland Business Barometer: Dip in Scottish business confidence

Bank of Scotland’s Business Barometer for October 2022 shows:  

  • Business confidence in Scotland fell 10 points during the last month to 5%
  • Country’s businesses identify top growth opportunities as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%)
  • Overall UK business confidence fell one point during the last month to 15%, with five out of 11 nations and regions reporting a higher reading than September

Business confidence in Scotland fell 10 points during October to 5%, according to the latest Business Barometer from Bank of Scotland Commercial Banking – conducted between 3rd-17th October.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 11 points at 22%.  When taken alongside their optimism in the economy, down 10 points to -14%, this gives a headline confidence reading of 5%. 

Scottish businesses identified their top target areas for growth in the next six months as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%).

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

A net balance of 16% of Scottish businesses expect to reduce staff levels over the next year, down two points on last month.

Overall UK business confidence fell one point during October to 15%, in line with the average over the last three months. Firms’ outlook on their future trading prospects was up two points to 27%, and a net balance of 21% are planning to create new jobs, up four points on last month. However, businesses optimism in the wider economy dropped three points to 2%.

Five UK regions and nations recorded a month-on-month increase in optimism in October. Of those, London (up 16 points to 49%), the North West (up 14 points to 28%) and Wales (up nine points to 5%) saw the largest monthly increases, with London remaining the most optimistic region overall.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “Ongoing economic challenges, not least the cost of doing business, is hitting firms and we’re seeing this reflected in a less optimistic outlook.

“As we approach the busiest trading period of the year for many, businesses across the country need to prioritise maintaining a steady cashflow to remain resilient and be well-equipped for any opportunities to grow.

“After all, Christmas can be a frenetic and expensive time for businesses and their customers, so firms need to have a plan in place to manage this, as well as having some money aside to cover unexpected costs.

“We’ll remain by the side of Scottish businesses to help them continue to navigate the challenging market conditions and push for growth.”  

Business confidence in the manufacturing sector fell for the fifth month in a row, to 13%, down 1 percentage point, the lowest confidence level since February 2021.

Confidence in the retail sector declined by 6 percentage points to 9%, while confidence in the services sector also fell to 16%, both the lowest levels since early 2021.

However, the construction sector saw a 10 percentage point rise to 20%, although this level still remains weaker than in the first half of the year.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “While confidence has marginally decreased this month, this also comes at a time of great economic uncertainty. The fact that it has only fallen by 1% suggests that businesses are showing resilience.

“As we head into the winter months and price pressures continue, energy price increases will start to bite and we are seeing continued pressure on pay expectations.

“Businesses need to keep a watchful eye on costs to ensure they are in the best possible position to face any future headwinds. For businesses that may be struggling, we encourage them to reach out to their networks for support. At Lloyds Bank we remain by the side of businesses to help navigate these challenging times.”  

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “While business confidence has marginally fallen this month, along with a drop in forward looking economic optimism, it is encouraging to see businesses still looking to increase their headcounts.

“However, cost pressures remain evident as businesses raise prices to protect their margins and wage pressure continue to be impactful. Given the recent turbulence in financial markets, it will be interesting to see how this will affect business confidence.”

Scotttish business confidence dips in August but remains in positive territory 

Bank of Scotland’s Business Barometer for August 2022 shows:   

·       Business confidence in Scotland fell 11 points during August to 5% 

·       Country’s firms identify top growth opportunities as diversifying into new markets (30%), evolving their offering (30%) and investing in their teams (27%) 

·       Overall UK business confidence fell nine points during the last month to 16%, its lowest level since March 2021, with only three out of 11 nations and regions recording a higher reading than July 

Business confidence in Scotland fell 11 points during August to 5%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.   

Companies across the country reported lower confidence in their own business prospects month-on-month, down 29 points at 3%.  When taken alongside their optimism in the economy, down 5 points to -6%, this gives a headline confidence reading of 5%.  

Scottish businesses identified their top target areas for growth in the next six months as diversifying into new markets (30%), evolving their offering (30%) and investing in their teams (27%). 

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 
 
A net balance of 10% of businesses in the region expect to increase staff levels over the next year, up 5 points on last month. 
 
Overall UK business confidence fell nine points during August to 16%, its lowest level since March 2021. Firms’ outlook on their future trading prospects was down 32 points to 5%, and their optimism in the wider economy dropped six points to 6%. The net balance of businesses planning to create new jobs also decreased five points to 16%. 
 
While every UK region and nation reported a positive confidence reading in August (except the South East, where confidence dropped 15 points to 0%), only three recorded a month-on-month increase in optimism. The three regions were the North West (up 26 points to 44%), South West (up 12 points to 23%) and Yorkshire (up nine points to 23%), with the North West now the most optimistic region overall. 

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Ongoing pressures around rising costs are clearly continuing to impact Scottish businesses but, despite this month’s dip, that confidence remains in positive territory is evidence of firms’ resilience.  
 
“At times like these, businesses need to keep a close eye on cash flow to help mitigate turbulence in the months ahead. It’s encouraging to see businesses continuing to target new growth opportunities, with nearly a third planning to diversify into new markets. 
 
“We’ll remain by the side of Scottish firms to help them successfully navigate the challenging period ahead.”  

Business confidence declined across all four sectors in August. Confidence within the retail sector declined the most this month (13%, down 18 points), with the service sector also seeing a significant nine-point decrease (15%). Other sectors saw moderate decreases, with manufacturing down by four points (16%) and construction (26%, a fall of two points), in line with recent trends. 

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:  “With inflationary pressures growing, businesses will no doubt be looking to their supply networks along with tight control of costs and profit margins where they can.  

“We know that rising costs are already dealing a heavy blow to businesses, but remaining agile to the changing economic environment will be vital for businesses in the months ahead.

“Firms must keep a tight watch on costs and structure their finances wisely, so they are in the best position possible. Businesses should try to remain flexible, and use the capital and cashflow available to them.  At Lloyds we remain by the side of businesses to help deliver that support.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Business confidence declined for a third consecutive month as firms continue to face economic challenges in the period ahead and as inflation concerns intensify.

“Despite edging lower this month, the outlook for both wage and price pressures remains elevated. However, there are some brighter points as the demand for staff remains positive, and firms reported lower concerns about staffing issues and the pandemic.”