According to Bank of Scotland’s latest Business Barometer survey, business confidence in Scotland rose 11 points during February to 53%, marking a six-month high.

While firms in Scotland reported lower confidence in their own business prospects month-on-month, down three points to 50%, their optimism in the economy rose 23 points to 55%.

Taken together, this results in a headline confidence reading of 53% (versus 42% in January), which is the highest level recorded in the country since August 2024.

Looking ahead at the next six months, Scottish businesses identified their top target areas for growth as investing in their team, i.e. through training (50%), introducing new technologies such as AI and automation (42%), and investing in sustainability (33%).

When it comes to the UK as a whole, UK business confidence rose 12 points in February to 49%, which is also its highest level since August 2024.

Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%.

The North East of England was the most confident UK nation or region in February (69%), followed by the North West and East of England, both at 61%.

Speaking on the Scottish results, Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “It’s encouraging to see Scottish business confidence rising again – not only to the highest level since August last year, but also ahead of the UK average.

“Equally promising is that Scottish businesses are leading the country when it comes to integrating sustainability into their growth strategies – with more having it as part of their six-month plans than anywhere else in the UK.

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“Businesses are increasingly recognising that renewable practices aren’t just good for the planet, they’re also a smart business decision, with sustainability and growth going hand in hand.

“We’ll continue to support Scottish firms as they look to make the most of new opportunities, including providing specialist solutions to enable investments in more sustainable business practices.”

The Bank of Scotland’s 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.