The latest Scottish Chambers of Commerce (SCC) Quarterly Economic Indicator for Q2 2024 reveals a modest upturn in business confidence and trading conditions across Scotland.

The survey, conducted with the Fraser of Allander Institute, offers key insights into the Scottish economy’s current state.

Scottish businesses are displaying cautious optimism, with a positive balance expecting increased activity over the next six months.

The share of firms anticipating weak economic growth has decreased, while those expecting moderate or strong growth have risen.

Taxation has surpassed inflation as the primary concern for businesses, with 89% citing economic uncertainty as a significant issue.

Recruitment difficulties have increased, particularly in retail and tourism sectors, with labour costs affecting three-quarters of firms.

Despite challenges, Q2 2024 saw improvements in cashflow, profits, and investment trends. Sales trends demonstrated strong growth, especially in domestic sales.

Cost pressures remain a concern, but there are signs of improvement.

The proportion of businesses reporting higher costs has decreased across all categories compared to the previous quarter.

The SCC is urging both Scottish and UK governments to deliver a long-term economic plan that supports a just transition, addresses skills shortages, and unlocks investment across the country.