Companies in Scotland reported lower confidence in their own trading outlook month-on-month, down five points at 57%. When taken alongside their optimism in the economy, up two points to 40%, this gives a headline confidence reading of 48% (vs. 50% in May 2026).

Despite this dip, Scottish firms reported strong customer demand (79%) as the key driver of optimism in the wider economy.
A net balance of 38% of businesses in the country also expect to increase staff levels over the next year, up seven points on last month. 

Business confidence in Scotland now sits slightly above the 12-month average of 47%, with its highest figure of 59% in August last year. 

Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (48%), introducing new technology such as AI or automation (45%) and entering new markets (39%). 

Martyn Kendrick, Regional Director for Scotland at Bank of Scotland, said: “While business confidence in Scotland has dipped slightly this month, it remains above the UK average, underlining the resilience and ambition we’re continuing to see across the country’s business community.

He added, “It’s particularly encouraging to see hiring intentions rising, suggesting many businesses are looking ahead with confidence despite the ongoing challenges facing the economy. With the busy summer trading period now underway, firms focusing on growth opportunities are investing in the people, products and services that will support their future success.”