BoS: Scottish business confidence edges up to 50 per cent

Martyn Kendrick

Companies in Scotland reported higher confidence in their own trading outlook month-on-month, up nine points at 62 per cent. When taken alongside their optimism in the economy, down five points to 38 per cent, this gives a headline confidence reading of 50 per cent, compared to 48 per cent in April 2026.

Scottish firms’ confidence in their own trading outlook was driven by stronger customer demand and expected new contracts or clients (70 per cent), while confidence in the economy was driven by stronger customer or market demand (60 per cent).

Almost a third (31 per cent) of businesses in Scotland also expect to increase staffing levels over the next year, down four points on last month.

Since May 2025, Scotland has had an average overall business confidence of 48 per cent with its largest figure of 59 per cent in August last year and its lowest of 36 per cent in December.

Looking ahead to the next six months, Scotland’s businesses identified their top target areas for growth as investing in their team, for example through training (47 per cent), introducing new technology, such as AI or automation (42 per cent), and evolving their offering, for example by introducing new products or services (39 per cent).

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said:“Scottish businesses are showing momentum, with confidence in their own trading prospects rising and firms looking ahead with optimism.

“Businesses are backing that confidence with action, with many planning to invest in training and new technology, demonstrating a clear commitment to long-term growth, innovation and building future capability.

“We’re here to support that momentum, whether it’s financing growth, helping with technology investment, or working with firms to develop their teams and capabilities.”