Companies in Scotland reported a 34-point increase in confidence in their business prospects to 41%, with economic optimism up 15 points to 35%. Top growth areas for the next six months include evolving their offer (37%), entering new markets (35%), and investing in sustainability (30%). The survey also showed 33% of businesses in the region plan to increase staff levels in the next year.

Chris Lawrie, area director for Scotland at Lloyds Bank Commercial Banking, said: “Scottish businesses are feeling confident about the months ahead and It’s great to see firms’ optimism in the overall economy is at its highest level since May 2022.

“With the winter months behind us, firms will likely be preparing for the brighter – and often busier – summer period. Businesses that keep a close eye on cash flow and manage their working capital will be best placed to capitalise on opportunities.

“We’ll continue to be by the side of Scottish businesses to help steer them through what we hope will be a strong spring and summer season.”

UK business confidence climbed to 32% in March, with all regions and nations showing positive readings. Confidence rose across sectors, particularly in construction, manufacturing, and retail. The full impact of the Chancellor’s recent announcements on business confidence remains to be seen.