Scotland was the UK’s least confident region as fell nine points during September to -18%, according to a Business Barometer from Bank of Scotland Commercial Banking .
Companies reported lower confidence in their prospects, falling five points to -5%. Combined with their views of the economy, this gives an overall confidence of -18%. UK-wide, confidence rose one point to 2% as firms’ confidence in their own prospects climbed five points to 13%.
Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Ongoing uncertainty continues to challenge many businesses, but there are always some sectors that can prosper in the environments we are experiencing.
“Despite confidence levels dipping, we are optimistic that they will bounce back once firms get a degree of clarity over their future trading environments.”
The Business Barometer questions 1,200 businesses monthly. Across Scotland, a net balance of 32% of businesses said they felt the UK’s exit from the EU was having a negative impact on expectations, down six points on a month ago. Scotland was 20 points below the national average.
Overall confidence remained the weakest in the manufacturing sector, where it fell by five points to -2%, and the services sector, which remained unchanged at -3%. Confidence in the retail sector rose by eight points to 14%, but fell two points in the construction sector to 10%.
Paul Gordon, managing director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: The national outlook continues to appear less positive again this month, although the improvements in the retail sector provides some reassurance of the continued resilience of the economy.
“Fluctuations in the regions are also continuing, and while overall confidence has weakened in most regions, it is worth noting that confidence has improved in the Midlands and Yorkshire & the Humber .”
