Political and economic uncertainty has been cited as a key reason as to why business confidence in Scotland fell by 17 points to 0% last month, according to new analysis.
Figures published by the latest Business Barometer from Bank of Scotland Commercial Banking indicate that companies in Scotland also reported lower confidence in their business prospects in July – falling by 26 points to 6%.
The Business Barometer questions around 1,200 firms each month and aims to provide early signals about UK economic trends both regionally and nationwide.
Across the UK, overall confidence was steady in July at 13% – in line with the average this year – but was below the long-term average of 24%.
Trading prospects for the year ahead fell by three points to 19%, but economic optimism rose by one point to 6%.
Employment expectations rose by one point to 12% when looking at the UK as a whole.
Fraser Sime, of Bank of Scotland Commercial Banking, said: “Current political and economic uncertainties are clearly at the forefront of Scottish businesses’ minds.
“Whatever lies ahead for businesses, we are by their side to support their growth ambitions.
“We’ve pledged to lend up to £1.6 billion to support Scottish firms this year, which we hope will allow them to hire more people, set their sights on expansion, and ultimately succeed.”
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