Highland businesses lack confidence in economy
A survey carried out this summer indicates most firms in the Highlands were operating then at either pre-Covid levels or above.
However, the survey also showed significant declines in levels of exporting activity and in the overall level of confidence in terms of economic outlook.
The Highlands and Island Enterprise (HIE) Business Panel survey forms part of a wider rural Scotland study with the Scottish Government and South of Scotland Enterprise.
Interviews were conducted in June and July, with 2719 businesses and social enterprises taking part, 1043 of which were based in the Highlands and Islands.
Around half (49 per cent) of respondents expressed confidence in the economic outlook for Scotland.
That was down from 60 per cent in the previous survey in February and March.
Two-thirds (67 per cent) of respondents said they were operating at either the same or above their pre-Covid pandemic level.
While the proportion of businesses trading domestically remained steady, the proportion exporting to international markets had fallen considerably in the past year – from 46 per cent in June/July 2021 to 28 per cent, and from 59 per cent to 48 per cent in terms of those selling to the rest of the UK. Almost all had been affected by rising costs.
Martin Johnson, HIE’s director of strategy and regional economy, said: “Businesses across our region have been hit with challenge after challenge over the past two or three years, from Brexit and Covid-19 to the conflict in Ukraine and the dramatic increases in costs.
“It’s clear from what businesses are telling us that, while nearly half are striving for growth, there are just as many still very much focused on resilience and being able to sustain current levels of operations.
“That said, it’s good to see that most businesses appear to be operating at their pre-pandemic levels and in line with their aspirations.”
