BUSINESS confidence has increased in Scotland in recent months in spite of political uncertainty but margins are getting squeezed amid pressure on prices, research has found.
The Institute of Chartered Accountants in England and Wales said the results of a survey of members in Scotland found confidence rose to the highest level in more than a year in the latest quarter.
Respondents were bullish about their sales prospects, particularly in export markets. The fall in the value of the pound since the Brexit vote has helped exporters.
But companies were reluctant to pass on the increases in input prices they suffered following the currency movement.
ICAEW Scotland President, Neil Strong, said: “It is encouraging to see that confidence levels in Scotland have risen – especially as they had been in negative territory for the previous four quarters.” However, he said the survey still showed there was some caution among business professionals in Scotland, with reductions in margins potentially impacting on profits and some firms operating below capacity.
The confidence reading increased to 10.4 in Scotland in the second quarter from -5.1 in the first.
The UK reading rose to 6.7 from -8.7.
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