Scottish business confidence on the rise as economic optimism increases
Business confidence in Scotland rose 13 points during October to 49 per cent, according to the latest Business Barometer from Bank of Scotland.
Companies in Scotland reported higher confidence in their own trading outlook month-on-month, up 13 points at 63 per cent. When taken alongside their optimism in the economy, up 14 points to 35 per cent, this gives a headline confidence reading of 49 per cent (in comparison with 36 per cent in September 2026).
Scottish firms' optimism in the economy was driven by stronger customer or market demand (49 per cent), improving interest rates or financial conditions (31 per cent) and a more stable political or global environment (29 per cent).
A net balance of 47 per cent of businesses in the country expect to increase staff levels over the next year, up one point on last month.
Business confidence in Scotland now sits above the 12-month average of 46 per cent, with its highest figure this year of 55 per cent in August.
Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as investing in their team, for example through training (42 per cent), entering new markets (39 per cent) and investing in sustainability (39 per cent).
Martyn Kendrick, Scotland director at Bank of Scotland commercial banking, said: “It's encouraging to see that confidence rose among Scottish businesses, particularly as firms appear positive about the opportunities ahead.
“What stands out is that this optimism is translating into plans for growth, with hiring intentions suggesting businesses are feeling confident about investing in their future.
“While challenges remain, the focus on developing talent and exploring new opportunities suggests firms are taking a longer-term view, putting themselves in a position to grow as conditions improve.”
Pictured: Martyn Kendrick, Scotland director at Bank of Scotland commercial banking
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