Companies in Scotland reported lower confidence in their own business prospects month-on-month, down two points at 43%. When taken alongside their optimism in the economy, down 25 points to 18%, this gives a headline confidence reading of 31% (vs. 44% in October).

Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as investing in their team, for example through training (57%), evolving their offering, for example by introducing new products or services (41%) and introducing new technology, such as AI and automation (28%).

The 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.

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “While business confidence has fallen this month, Scottish firms are identifying fresh avenues for growth – whether that’s by investing in new technology, or developing new skills.

“We’ll continue to be by their side to help them achieve their ambitions. This will include helping businesses make the investments they need to make the most of any seasonal spikes in demand, and to lay the foundations for an even stronger new year.”

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “In November, the overall confidence metric fell by three points for the third month running. This is the lowest level since June, but still above the survey’s long-term average, which is ultimately positive from a longer-term perspective.

“These results suggest that while firms have mixed views about the economy, they see their businesses in a good place to cope with any challenges they might face. Hiring intentions, although moderating this month, haven’t fallen by much which is also positive news.

“Overall, these results show that businesses are still positive and feeling resilient, albeit with tempered views on the economic outlook.”