Business confidence in Scotland recorded a notable decline in November 2023, falling at a rate significantly quicker than the average across the United Kingdom, according to the latest survey from the Bank of Scotland. Despite the downward trend, the overall confidence levels have remained positive, with companies continuing to prioritise growth through strategic investments, particularly in emerging technologies such as artificial intelligence and automation.

The Bank of Scotland’s business barometer indicated that confidence among Scottish businesses plummeted by 13 points to 31% in November. This measurement is derived from the net balance of firms reporting a positive versus negative outlook, rated on a scale that ranges from -100% to 100%.

In terms of trading prospects, enthusiasm among business owners dipped slightly, with the confidence level now standing at 43%. More conspicuously, trust in the wider economy saw a steep decline of 25 points, dropping to just 18%. In contrast, UK-wide business confidence retreated by three points to 41%. Notably, there has been a slight increase in firms’ confidence regarding their own trading prospects while economic optimism has lessened.

Looking ahead, Scottish businesses have pinpointed important growth areas that they plan to pursue in the next six months. The highest priority, identified by 57% of respondents, is investing in team development through training initiatives. Following this, 41% highlighted the need to evolve their product and service offerings, while 28% expressed interest in integrating new technologies, specifically artificial intelligence and automation, into their business practices.

Martyn Kendrick, the Scotland director at Bank of Scotland commercial banking, provided insight into the current landscape, stating, “While business confidence has fallen this month, Scottish firms are identifying fresh avenues for growth – whether that’s by investing in new technology or developing new skills.”

The findings of this survey underscore the challenges and opportunities currently confronting Scottish businesses as they navigate a complex economic environment. The drive towards innovation and strategic investment, particularly in automation and AI, appears to be a key focus area for firms striving to maintain their competitive edge in an ever-evolving marketplace.

Source: Noah Wire Services