Summary
- Scottish business confidence rose 13 points to 49% in October, above its 12-month average of 46%.
- A net balance of 47% of Scottish firms expected to increase staffing over the next year.
- Training, entering new markets and sustainability investment were businesses’ leading growth priorities for the next six months.
Full Article
Scottish business confidence rose sharply in October as firms reported stronger trading prospects and set out plans to recruit, develop staff and enter new markets, according to Bank of Scotland’s latest Business Barometer.
The headline confidence reading increased 13 points to 49%, up from 36% in September and above Scotland’s 12-month average of 46%. It was also two points higher than the UK-wide reading of 47%, although below Scotland’s peak for the year of 55% in August.
Confidence in Scottish firms’ own trading outlook rose 13 points to 63%, while optimism about the wider economy increased 14 points to 35%. The headline measure combines these two readings.
Stronger customer or market demand was cited by 49% of Scottish firms as a driver of economic optimism, followed by improving interest rates or financial conditions at 31% and a more stable political or global environment at 29%.
A net balance of 47% of Scottish businesses expected to increase staffing over the next year, up one point on September. This measures the proportion expecting to add staff minus the proportion expecting to reduce headcount, rather than the total share planning to recruit.
Looking ahead six months, 42% identified investing in their team, including training, as a target area for growth. Entering new markets and investing in sustainability were each cited by 39%.
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.”
In Case You Missed It:
Across the UK, confidence rose six points from September’s 41% to 47%, above the survey’s long-term average of 30%. Optimism about the wider economy increased nine points to 40%, while confidence in firms’ own trading outlook rose five points to 55%.
The monthly survey was conducted by Ipsos on behalf of Lloyds Bank between 2 and 15 October 2026. It covered 1,200 companies across the UK, including 101 in Scotland, with results reweighted to reflect the business population by sector, region and size.
