Business sentiment index – December 2022

Appetite for investment

The one positive is that, overall, nearly three quarters of Scottish firms are still looking to seek funding for investment in the next 12 months, up from 67% in July. This is reflected across all key sectors, with the most notable rise coming in Services, where the number of firms planning to seek funding has risen by 32%.

Q Does your business plan to seek funding for business investment in the next 12 months?

Missed opportunities

The number of companies missing business opportunities due to a lack of available continues to rise, with half (July: 35%) admitting to having lost out.

With pressure on cash flow, most ambitious businesses rely on additional finance to enable them to invest in growth.

Q Have you missed a business opportunity in the last 12 months, due to lack of available finance?

Economic outlook

Scottish business owners are, unsurprisingly, more negative than positive about the macro-economic outlook and it’s this indicator that has contributed most to the decline in the overall BSI; for example, in November 2021 65% of respondents in Scotland were positive about the economy – by Q1 2023 this had fallen to just 39%.

Concerned that the economy will slow down

I don't think there will be a significant change in the economy

Predicted business performance

Predictions about future business performance is largely unchanged, with the majority expecting their prospects to remain unchanged.

QIn general, how do you expect your business to perform over the next 12 months?

Score calculation*

The BSI is based on the views of 900 business owners and senior members of the UK’s business community and calculated from data charting their:

• Appetite for investment in their business in the coming 12 months

• Access to finance and whether they’ve missed a business opportunity through lack of available finance

• Views about the UK’s economic outlook

• Thoughts on their likely performance in the coming 12 months