Confidence in Scots businesses falls but vaccine offers hope

Confidence in Scotland’s businesses fell by ten points in November – but saw a dramatic rise amid coronavirus vaccine announcements, according to a new survey.

The Business Barometer from Bank of Scotland Commercial Banking found optimism sat at -38% for Scots firms.

However, the report tracked a dramatic increase across the whole UK in business confidence after the announcement that the Pfizer and BioNTech vaccine has 90% efficacy against Covid-19.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Confidence has faltered on the backdrop of a tightening of restrictions across large parts of Scotland.

“However, the roll-out of vaccines looks increasingly likely to happen in the coming months, and December’s barometer will provide an indication as to how the ongoing development of the Covid-19 exit strategy is affecting companies’ confidence.

“We’ll continue to be by the side of Scottish businesses as we work together to emerge successfully from the pandemic.”

The barometer questions 1200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Companies in Scotland also reported lower confidence in their own prospects, down six points month-on-month at -27%.

For the month as a whole, UK business confidence registered at -21%, down three points on October.