This report summarises the key results from our latest Fraser of Allander Institute (FAI) Scottish Business Monitor.The survey sampled over 350 firms in August and September from across the Scottish economy, examining business sentiment in Q3 2024 and the outlook for the year ahead.In Q3 2024, business sentiment remains consistently positive. Firms are reporting an increase in employment levels, and cost pressures are easing. Recent interest rate cuts are helping a more favourable climate for investment, leading to a noticeable reduction in the challenges businesses are facing compared to this time last year.Despite these positive indicators, some challenges remain. Ongoing issues related to exports, investment, staff availability, and rising employee costs continue to pose significant hurdles for businesses. Consequently, while growth expectations are encouraging, they are somewhat tempered by these persistent concerns. As a result, one in four firms are now expecting modest growth in the Scottish economy over the coming year.Our latest results also show that:
- Scottish businesses continue to show steady confidence in their activity levels for the next six months, with expectations for business volume holding firm at a net balance of 16 to 17.
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Related Organizations
- Pages
- 10
- Project
- Scottish Business Monitor
- Published in
- United Kingdom
Table of Contents
- Table of contents 2
- Executive Summary 2
- Section 1 Current Scottish Business Activity 2
- Section 2 Key Results 2
- Section 3 Outlook for the Next Year 2
- Executive Summ ary 3
- Section 1 Current Business Activity 4
- Dip in Sales -0.8 4
- New Business Activity Shows Signs of Recovery -1.4 4
- Turnover Steady 3.4 4
- Employment Strongest Improvement 4
- 3.9. 4
- Capital Investment and Exports Remain Negative 4
- -5.4 -11.3 4
- Encouraging Signs for Investment 4
- Chart 1 4
- Section 2 Key Results 5
- Businesses sentiment remains steady. 5
- Chart 2 5
- Net balance of firms is defined as the share of firms reporting higher minus the share of firms reporting lower 5
- Wages employee costs continue to be the biggest cost pressure on firms. 6
- Cost of credit 30 6
- Total employee costs and wages 6
- Chart 3 6
- Some businesses responded NA therefore percentages may not sum to 100 6
- Economic and business uncertainty remain top concern for firms ahead of upcoming budgets but credit concerns ease. 7
- Economic and business uncertainty 85 7
- Staff availability 78 7
- Political uncertainty 75 7
- Chart 4 7
- Some businesses responded NA therefore percentages may not sum to 100 7
- 1 in 4 firms expecting moderate growth in Scottish economy over next year. 8
- 4 Strong or 8
- Very Strong 8
- Chart 5 8
- Some businesses responded NA therefore percentages may not sum to 100 8