BUSINESS confidence has edged up in Scotland but uncertainty over Brexit continues to present the biggest threat to firms, a survey published today has found.
The balance of firms expressing confidence over their outlook climbed to 20 per cent from 17 per cent in the last six months, according to the latest Business in Britain report from Bank of Scotland.
Confidence is calculated by the report as an average of survey respondents’ views on the key measures of sales, orders and profits for the next six months. Based on the views of more than 1,500 UK companies, it found confidence was at its highest in London, where a balance of 31 per cent said they were confident about the second half of the year.
In Scotland, the net balance of firms planning to increase investment rose by 11 points to 13 per cent in January.
However, the report found that Brexit is viewed to be the single greatest risk to firms in Scotland over the next six months, having been cited by 29 per cent of those surveyed. Those reporting weaker UK demand as the greatest risk dropped five points to 13%, while those highlighting weaker global demand climbed nine points to 13%.
Bank of Scotland’s Fraser Sime said: “Businesses in Scotland have shown great resilience and have continued to adapt to these turbulent times.
“Despite firms starting to feel more confident as the landscape shows signs of levelling out, Brexit uncertainty is still at the forefront of minds across Scotland. We are however seeing businesses begin to take cautious steps towards growth, with plans to increase investment and recruit more staff. Now we need to continue to support those businesses to ensure they seize every opportunity”.
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