Martyn Kendrick – Scotland director at Bank of Scotland Commercial Banking

Companies in Scotland reported higher confidence in their own trading outlook month-on-month, up 22 points at 63%. When taken alongside their optimism in the economy, down two points to 39%, this gives a headline confidence reading of 51% (vs. 41% in February).

A net balance of 46% of businesses in the country also expect to increase staff levels over the next year, up one point on last month.

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. This month’s survey was conducted at the start of March, between 2 – 16th.

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “As business confidence holds this month, we remain focused on supporting firms across Scotland, providing the finance, guidance and expertise they may need.”

UK-wide business confidence rose 11 points in March to 55%.

Firms’ confidence in their own trading prospects rose seven points to 60%, and their optimism in the wider economy increased 14 points to 50%.

Commenting on UK confidence trends, Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “While businesses are adept at reacting to uncertain, fast-moving conditions, this month’s results show an interesting divergence in sentiment.

“Smaller businesses may have remained confident because they had not yet seen an immediate change in customer demand or supply chain disruption. Larger firms, however, read global events more cautiously because of their closer exposure to global markets.

“With most responses coming in the very early stages of the Middle East conflict, we’ll be watching closely to see how confidence evolves.”