Scottish small business confidence has fallen below the UK average after a difficult quarter, according to the Federation of Small Businesses (FSB).
The business body’s Voice of Small Business Index, published today, reveals an 18 point drop in the third quarter of 2014 in Scotland, bringing the total to +26 points.
But the index is still two points higher than it was this time last year.
It also shows that the UK average has grown over the past quarter, by 2.3 points to +41 points, with Scotland being an exception.
FSB says that while 45% of small and medium-sized enterprises in Scotland believe their prospects will improve over the next three months, 19% expect them to deteriorate.
Andy Willox, the group’s Aberdeen-based Scottish policy convenor, said: “Scottish small business confidence has been on a broadly upward trajectory and we need to remember that we’re still in positive territory.
“But a big fall like this highlights why we keep our finger on the pulse of Scotland’s small businesses and make sure our members get a fair deal.
“We need to understand if this fall is a one-off blip or marks the start of a trend.”
The figures also show that Scottish businesses are less likely to recruit in the current quarter but fewer of them are finding finance unaffordable, or reporting increasing overheads.