Scottish Business Confidence Plummets to 36 Percent in September

Business confidence in Scotland fell to 36 percent in September, marking a 19-point decline from August's 55 percent. According to the Bank of Scotland's Business Barometer, the slump was driven by a 15-point drop in trading outlook and a 24-point decrease in economic optimism.

Across the United Kingdom, confidence declined 12 points to 41 percent, the lowest level since April 2025. Amanda Murphy, chief executive of Lloyds Business and Commercial Banking, attributed the national dip largely to higher energy prices resulting from renewed tensions in the Middle East. She noted that while larger firms remain confident, smaller businesses are struggling with inflationary pressures and global uncertainty.

Despite the downturn, Scottish firms show a strong commitment to long-term expansion. Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, reported that 46 percent of Scottish businesses expect to increase staffing levels over the next year. Additionally, 39 percent of firms in the region are targeting sustainability investments, the highest rate of any region in the United Kingdom.