Scottish Business Monitor, 2021 Q4

14th February 2022

This press release summarises the key results from our latest Fraser of Allander (FAI) Scottish Business Monitor, published in partnership with Addleshaw Goddard.

Scottish business sentiment remained positive in the fourth quarter of 2021, but the rising cost of energy impacts prospects for 2022 and operates as a drag on the outlook for economic growth, despite the easing of pandemic restrictions.

The results of the latest Addleshaw Goddard Scottish Business Monitor report - produced in partnership with the University of Strathclyde's Fraser of Allander Institute - revealed that only 7% of firms are expecting strong growth during the next 12 months, while one in five businesses expect to reduce operations this year due to the increase in energy prices.

Businesses in all sectors reported positive net balances for the volume of business for the third consecutive quarter, and all core business indicators barring export activity remained optimistic throughout 2021.

However, the ongoing impact of Covid, difficulty in attracting and retaining staff, and the prices of inputs are the other main concerns, while inflationary pressures see 80% of firms expecting the prices of their goods and services to increase more than normal in the year ahead.

More than half of Scottish businesses are finding it difficult to source the goods and services they require, and more than 80% are struggling to recruit the staff they need. Almost a quarter of businesses are also finding it difficult or very difficult to retain their own people.

Read the full article HERE