Scottish Business Activity Falls for 4th Month as July Employment Hits 22-Month High
Updated
Updated · Edinburgh Chamber of Commerce · Aug 12
Scottish Business Activity Falls for 4th Month as July Employment Hits 22-Month High
3 articles · Updated · Edinburgh Chamber of Commerce · Aug 12
Summary
Scotland’s Business Activity Index slipped to 47.3 in July from 47.6 in June, extending private-sector contraction to a fourth straight month even as payroll growth accelerated.
Twenty-two months of falling new orders and the steepest sales decline among 12 UK regions drove the weakness, with firms citing subdued economic conditions, geopolitical uncertainty and customer reluctance to commit.
Employment rose at its fastest pace since September 2024, led by service firms hiring for expected projects, while goods producers continued cutting staff.
Cost and selling-price inflation both eased again in July—Scotland posted the weakest charge inflation across the UK regions—while business confidence improved to a four-month high, though only Northern Ireland was less optimistic.