CONFIDENCE levels among Scottish businesses are at the second lowest level ever recorded, according to a survey from Bank of Scotland.
The Business in Britain report follows last Thursday’s publication of a Federation of Small Business report which found small business confidence was at its lowest ever level.
Business confidence in Scotland – calculated as an average of respondents’ expected sales, orders and profits over the next six months – was down two points at 17 per cent compared with 19 per cent in July 2017.
This makes Scotland the second least confident region in the UK, after Yorkshire and Humber.
The bi-annual survey, which is now in its 26th year, speaks to 1,500 businesses across the UK, including 125 in Scotland.
Economic uncertainty was cited by 27 per cent of Scottish firms as the greatest risk to their business over the next six months. This was followed by weaker UK demand at 18 per cent.
On the topic of Brexit, 38 per cent of firms said they were confident about business interests being protected or promoted in Brexit negotiations. This was down from 49 per cent in July.
More than one third of businesses now express a lack of confidence on Brexit.
Overall, 46 per cent of Scottish firms said that no trade deal with the European Union would be negative for their business and 14 per cent said that it would be positive.
The survey did not indicate the reliance of exports on these firms, but confidence was noted to be growing in sectors which rely on domestic demand.
There was some relief in the survey with the net balance of firms looking to grow investment in the next six months remaining at two per cent, while the share of firms anticipating stronger exports remained at 17 per cent.
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