By Kristy Dorsey
Confidence among Scottish businesses has further strengthened with the continuing reopening of the economy, according to new figures published today.
The survey from the Institute of Chartered Accountants in England and Wales (ICAEW) found that overall confidence is at its highest since 2014, beating the level in May when its quarterly monitor hit its previous seven-year high. Companies are predicting domestic sales growth of 6.8 per cent in the coming 12 months, which would be the fastest rate of growth in Scotland since the ICAEW’s Business Confidence Monitor began in 2004.
As a result, staff numbers are expected to rise by 3% during the next year, while employers are anticipating a 2% increase in average salary levels over that same period.
READ MORE: Scottish business confidence climbs to highest since 2014
Scottish firms expect exports to rise by 3.3%, even though 45% of those questioned cited regulatory requirements as a growing source of difficulty. The ICAEW said companies appeared to be experiencing problems adjusting to Covid-related restrictions and post-Brexit changes to customs procedures.
Staff turnover was a worry for more than a quarter of companies, while a similar number said that finding skilled management and labour is more challenging than it was 12 months ago.
ICAEW regional director David Bond said the findings, particularly on domestic sales growth, were positive for the Scottish economy.
READ MORE: Scottish firms reveal effect of transport issues, with Brexit cited as key factor
“But our businesses tell us they continue to face challenges with recruitment and from complicated regulatory requirements,” he added. “It is vital that, given Scotland’s economic recovery and concerns that the global health situation could deteriorate in the autumn, businesses are not hit with additional costs as support schemes such as furlough are wound down.”
On a UK level, business confidence reached a record high for the second quarter running. As in Scotland, this was underpinned by expectations of a record 7.4% rise in domestic sales growth.
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