September confidence falls in Scotland, UK and US economies

Business and consumer confidence dipped sharply in September on both sides of the Atlantic, surveys showed, with Scottish and UK firms reporting weaker outlooks for the coming months and American households growing more pessimistic about jobs and inflation. In Scotland, Bank of Scotland data showed a 20 point drop in headline business confidence to 39, while a separate industry survey found business leaders across the UK recorded a record low sentiment for the economy.

The Bank of Scotland's Business Barometer reported firms in Scotland cut their optimism about their own prospects by 20 points to 45 and reduced their view of the wider economy by 18 points to 34, producing a headline reading of 39 compared with 59 in August. Across the UK overall, business confidence fell 12 points to 42, with manufacturing, retail, services and construction all reporting weaker sentiment. Manufacturing saw the largest fall, down 31 points to 31, a two year low. Retail sentiment dropped 17 points to 40 and services fell six points to 47. Construction declined for a fourth consecutive month, down five points to 35.

Despite the falls, many companies said they still planned to invest. Firms...