Business confidence at highest level in eight months, RBS finds
The private sector also saw its strongest rise in activity since November, the bank's growth tracker found.
Overall, the combined output of Scotland's manufacturing and service sectors rose from a score of 50.5 in May to 50.9 in June.
It marks the second consecutive monthly rise in business activity.
RBS said that while the uptick was modest overall, it was the strongest since November 2024.
The growth was driven entirely by the services sector with new project funding and a rise in demand underscoring the uptick.
Manufacturing continued to fall sharply, the tracker found.
Overall, business confidence improved to its highest level of optimism in eight months.
Judith Cruickshank, chair of the One Bank Scotland Board, said: 'Scotland's private sector recorded a sustained uptick in activity at the end of the second quarter, with growth predominantly driven by service providers.
'In contrast, the manufacturing sector faced a challenging demand environment, leading to overall declines in new business and production.
'Despite these sectoral differences, firms exhibited increased optimism about the future, with manufacturers reporting positive growth forecasts for the first time in three months.
'In June, private sector firms encountered sharply rising operating costs, but selling price inflation slowed notably. This suggests a willingness among businesses to absorb some costs to bolster sales.
'The employment landscape remained broadly stable compared to the previous month, with sector data continuing to highlight diverging trends between manufacturers and service providers.'
The UK as a whole saw output growth rise to a nine-month high, the tracker found, driven by expansions in business activity across eight of the 12 nations and regions monitored by the survey.
Companies in Scotland recorded a ninth successive monthly fall in incoming new orders during June.
The reduction in new work was centred on the manufacturing sector as services firms reported another expansion.
UK-wide, new business rose for the first time in seven months.
In Scotland, private sector companies remained optimistic about the year-ahead for activity in June.
The degree of positive sentiment rose for a third straight month to the highest since October but was weaker than that recorded for the UK as a whole.
Confidence across Scotland was supported by plans to introduce new product lines, improved operational performance, and strategic marketing efforts, the survey found.
And after a slight rise in employment in May, Scotland's workforce numbers were broadly unchanged in June.
Services firms reported increases in staffing levels amid upturns in new business and activity.
However, this was offset by another month of job shedding at manufacturers.
A near universal fall in headcounts was also recorded across the 12 monitored UK regions and nations, with Northern Ireland being the sole exception.
Among the remaining areas, Scotland experienced the least pronounced drop in employment and one that was only 'fractional', RBS said.
Since mid-2024, Scottish firms have continued to record a drop in backlogs of work, although June's rate of depletion was the weakest in eight months.
RBS said that the fall is driven by a lack of orders in manufacturing which has allowed firms to complete outstanding orders.
According to the survey, Scottish firms signalled another marked increase in average input costs during June.
It found the rate of inflation quickened from May and was 'historically elevated'.
Survey respondents often reported higher costs for materials, labour and energy, as well as rising supplier prices.
However, the rise was less pronounced in Scotland compared to the UK as a whole.
Firms north of the order also raised their output prices at a reduced rate in June.
RBS described said the latest increase in charges was 'solid' but still amounted to the slowest rate in 11 months and was similar to the UK-wide average.
Where higher charges were recorded, they were primarily attributed to the pass-through of increased operating expenses to customers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Finextra
4 minutes ago
- Finextra
NatWest hires AWS and Accenture to consolidate customer data across the bank
NatWest has signed a five-year deal with Amazon Web Services and Accenture to consolidate its customer data streams into a single, bank-wide data platform, enabled by AI. 0 The project will revamp the storage of data on 20 million customers across the bank to help anticipate and respond to customer needs faster with more personalised services. As a result, the bank's relationship managers will gain a deeper insight into customer financial wellness, equipping them with tools and analytics to provide recommendations, products and support that proactively meet their needs. The avilability of better quality data is also expected to aid faster onboarding, improve customer complaints handling, support security and protection measures by reducing the time it takes to alert customers of fraud risks and to provide more efficient and faster financial, risk and regulatory reporting through improved data sourcing. Paul Thwaite, CEO of NatWest Group, says: 'This collaboration with Accenture and AWS is key to helping us progress the transformation of NatWest as we become a simpler, more technology and data-driven bank. Our industry — and the expectations of our customers — are changing rapidly and we are building our capabilities in order to understand and serve their needs better and faster than ever before. Equipped with high quality data, we can continue to quietly revolutionise how we serve our customers through the use of AI and other technologies in order to provide more personalised products and services.'
Auto Express
4 minutes ago
- Auto Express
New MG IM6 review: the EV to finally tame Tesla
The IM6 takes a lot of what we like about MG and uses it to become a real competitor in the crucial mid-size electric SUV market. It's packed full of equipment, has a roomy cabin and comes with a seriously impressive electric powertrain. It doesn't quite have the driver-involvement to match its stonking straight-line pace and even with fancy adaptive air suspension, the ride felt a little fussy. Range and charging are up there with the very best. We're looking forward to seeing how the IM6 is received in the UK, because it certainly deserves a place here. Advertisement - Article continues below Looking around the new MG IM6 for the first time, you'd be well within your rights to wonder what it is exactly. Aside from the small 'MG' script on the bootlid, you'd have no clue that this new electric SUV comes from the storied British company. One giveaway may be the likelihood that you'll be looking at the new IM6 at one of MG's 155 UK dealerships because every single one is signing up to sell this new car and its sister model, the IM5 saloon. The two arrive simultaneously as an important new model range for MG. The significance of the IM6 and the IM5 lies in their respective markets. The IM6 will allow MG to enter the all-important mid-size electric SUV segment for the first time and the IM5 will do the same with the electric executive saloon sector. Skip advert Advertisement - Article continues below View Arkana View Tiguan View X1 When you consider that MG has been associated largely with lower-end, affordable cars since its rebirth under Chinese ownership, it starts to make sense that the IM6 and IM5 will keep their physical 'IM' logos. IM stands for Intelligence in Motion and is used as a brand in regions like China and Australia where the two cars are already on sale. Advertisement - Article continues below A more practical reason for the new branding is because changing the bootlid logo (which houses the boot release button in the top left dot) and the steering wheel emblem (which would require crashing testing again with an MG badge) would cost MG a fair chunk of money - something relayed back to us by several MG representatives. Can't wait for the new MG IM6 to hit UK showrooms? Configure your perfect MG 4 through our Find a Car service now. Alternatively, check out our top prices on used MG4 models... Now, we've said the IM6 enters the mid-size electric SUV sector and it does so in three trims. There's the Long Range at £47,995, followed by the £50,995 Performance model and finally there's a £52,995 Launch Edition - which is what we're driving here. Unlike the IM5 saloon, which comes with a smaller 75kWh entry-level model, the IM6 SUV gets the larger 100kWh unit as standard across the range. Skip advert Advertisement - Article continues below An NMC (nickel, magnesium cobalt chemistry) battery and a low drag coefficient of just 0.242 gives the IM6 Long Range a maximum of 388 miles with its single-motor, rear-wheel drive layout. You get 313 miles from the more powerful dual-motor setup that the Performance and Launch Edition versions feature. Advertisement - Article continues below Those are some pretty impressive figures compared to the MG's immediate rivals. It beats the Skoda Enyaq's maximum 360 miles, the Kia EV6's 361 miles and even the almighty Tesla Model Y Long Range Rear-Wheel Drive's 387 miles is bested (albeit just by one mile). During our time with the IM6 we saw 3.2 miles per kWh which would've returned 320 miles - not bad after a mixture of motorway, town roads, and some spirited driving. Sitting on a brand new EV-dedicated 800V platform (which MG hasn't named), the IM6 also offers super fast charging. A maximum recharge rate of 396kW will see a 10 to 80 per cent top up take just 17 minutes, at the right charger. Single-motor, rear-wheel drive versions of the IM6 are offered in other markets with a 292bhp model providing a 6.8-second zero to 62mph time, but in the UK the IM6 kicks off with a more powerful 402bhp single-motor, lowering the sprint to 5.4 seconds. It's the Launch Edition we tested with its dual-motor layout packing rather startling figures of 741bhp and 802Nm of torque. Skip advert Advertisement - Article continues below That significant bump in output means the IM6 Launch Edition has more power than the latest Aston Martin Vantage, Ferrari Amalfi or even any Lamborghini Huracan. It also drops the zero to 62mph time to a frankly ridiculous 3.5 seconds and raises the top speed over the single-motor by 2mph to 148mph. Advertisement - Article continues below In a straight line the IM6's performance is genuinely breathtaking - especially so if you jump-in thinking this is another regular family SUV. It doesn't feel particularly different to any other fast electric SUV with a big dollop of torque catapulting you off the line - in the IM6 there's a distant hum of the electric motors but no augmented noise to hint at how fast you're going. Unlike the rather squirrely single-motor IM5 saloon we tried, the IM6's all-wheel drive system does manage to transmit its power to the Tarmac through what are relatively modestly-sized Pirelli tyres on 21-inch wheels (20-inch rims come on the single-motor variant). The sensation of acceleration is pretty brutal at first and credit to MG, the IM6 doesn't waver too much in its power delivery at higher speeds, either. With all that power you'd hope the IM6 would have some sort of dynamism and driving feel to back it up. It's a bit of a mixed bag. The IM6 is made in China primarily for the Chinese market, which typically prefers a soft set up. It has, however, been developed further for the UK by MG's engineers in Longbridge to help it suit our driving styles and preferences. Advertisement - Article continues below Skip advert Advertisement - Article continues below The car has stiffer springs and firmer damping than in other markets, the aim for MG being to give the IM6 more of a driver-focused experience in the UK. Our Launch Edition car, with its standard-fit adaptive air suspension gets several modes to play with - tweaking not only the damping of the suspension on the fly, but also the ride height, steering weight and throttle response. The brake pedal feel can also be altered, though not via paddles behind the steering wheel as those are reserved for cruise control and forward automatic braking distance settings. The brakes themselves are quite interesting because they're from Continental and branded as such - we're not sure (and neither are MG by the sound of things) why the IM6 and IM5 don't come with Continental tyres as well. We found the brakes to be strong enough overall and the regenerative braking system has been integrated smoothly. On the move, the IM6 bobs along in Eco and Comfort mode fairly well, though scarred road surfaces and potholes occasionally send judders through the cabin - which is a little disappointing when you consider the system is supposed to adjust its damping 10 times per second. Advertisement - Article continues below Skip advert Advertisement - Article continues below Taking up plenty of slack are the seats which have inserts that might look like a pack of hot cross buns, but are wonderfully cushioned in practice - if not not terribly supportive in the bends. Being an EV, the IM6 has a natural hushed tone while cruising and helping the overall sense of refinement is the standard-fit, double-glazed panoramic roof and double-layer glass all around. That glazing alone reduces cabin noise by 12 decibels, according to MG and from our experience it works a treat. Sling it into Sport mode and the firmness of the ride increases dramatically - something that's not always the case with heavy EVs riding on air suspension. There's aluminium double wishbone front suspension, a multi-link rear suspension and Pirelli tyres - though all those things don't really turn the IM6 into a sports car. It's incredibly quick getting to a corner and, in fairness, there's all-wheel drive that can be leant on to provide grip, but the steering is a let down. There's precious little feedback and in Sport mode the extra weight of the wheel leaves you feeling a bit disconnected and certainly not inspired with confidence to revel in the car's power. Advertisement - Article continues below Skip advert Advertisement - Article continues below Every IM6 comes with four-wheel steering, which results in a turning circle of 10.18 metres - roughly what you'd expect of most superminis. The rear-wheel steering gives the IM6 the ability to 'crab walk' sideways to help with tight car parking and the car can park itself at the touch of a button in various scenarios. If you find yourself in a dead end it can even reverse itself out along the same route for up to 100 metres. The design of the IM6 has drawn plenty of comparisons to Aston Martin's DBX, the Porsche Macan and the Tesla Model Y. MG officials were pretty candid with us on the subject of these comparisons by stating 'it's not a bad group of cars to be compared to'. The flush-fitting door handles pop out when the car's unlocked- a normal function these days - though we felt a little bit of a delay between the physical handle being pulled and the door opening. It's a very minor gripe, though, and we're sure you'd get used to it after a few days. Once you're inside the IM6 you're met with either a white or grey 'leather-style' cabin. The layout is almost identical to the IM5's interior. The only discernible differences we could find were that the armrest could slide forwards in the SUV and not in the IM5 and the front seats were a little higher in the IM6, which let back seat passengers stick their feet underneath. Advertisement - Article continues below Skip advert Advertisement - Article continues below The low-slung bonnet means frontal visibility is wonderful, though rearward visibility is absolutely atrocious thanks to a tiny glass opening and one of the smallest rearview mirrors we've ever encountered. There are several rear-facing cameras providing decent quality video feeds to the main screen that alleviate this issue somewhat, but it's no substitute for a large rear glass area to look through. The IM6 is 153mm longer than a Tesla Model Y and 246mm longer than a Skoda Enyaq. As a result (helped by the panoramic roof) it's incredibly airy inside and space is plentiful for both front and rear occupants. There's a spacious 665-litre boot in the rear and a 32-litre 'frunk' for storage of the charging cables. Up front, the dash is an extremely minimalist affair with all physical buttons done away with, even the hazard warning light button is located on the ceiling. Pretty much every control ( climate, lighting, seating adjustment and even the boot opening) is located within the 10.5-inch touchscreen on the centre console. Luckily, the infotainment system the IM6 and IM5 share is a big step up from the one found in the MG4. There's obviously a lot of information and menus, but it's easy to navigate and we've got no complaints about responsiveness. There's another screen sitting on the dash and it measures a massive 26.3-inches. It's more of a conventional dual-screen set up, like you'd find on Kias, Hyundais and BMWs, with a dedicated driver's display showing the usual key graphics and a touchscreen in the middle for audio, maps or general apps. We did try the integrated sat-nav and found it to be lacking in detail, plus it wasn't that easy to follow - happily the smartphone integration is quick and painless. Being part of a new model line designed to sit above MG's current range as a more premium offering, IM6 needs the cabin quality to fight against some classy rivals and for the most part it's succeeded here. The faux leather upholstery felt tight, the few buttons dotted around felt solid to the touch and the materials used on the doors and dash seemed sturdy too. We're unconvinced by the crushed velvet floor mats, though. Model: MG IM6 Performance Launch Edition Price: £52,995 Powertrain: 100kWh battery, 2x e-motors Power/torque: 741bhp/802Nm Transmission: Single-speed auto, four-wheel drive 0-62mph: 3.5 seconds Top speed: 148mph Range: 313 miles Max charging: 396kW (10-80% in 17 mins) Size (L/W/H): 4,904/1,988/1,669mm On sale: Now
The Independent
4 minutes ago
- The Independent
Two former traders have rate rigging convictions quashed at Supreme Court
Two financial market traders who were jailed for manipulating benchmark interest rates have had their convictions quashed at the Supreme Court. Former Citigroup and UBS trader Tom Hayes was found guilty of multiple counts of conspiracy to defraud over manipulating the London Inter-Bank Offered Rate (Libor) between 2006 and 2010. Carlo Palombo, ex-vice president of euro rates at Barclays bank, was found guilty of conspiring with others to submit false or misleading Euro Interbank Offered Rate (Euribor) submissions between 2005 and 2009. The Court of Appeal dismissed appeals from both men in March last year. They then took their cases to the Supreme Court. On Wednesday, the panel of five justices found there was 'ample evidence' for a jury to convict the two men had it been properly directed, but they had not. In an 82-page judgment, with which Supreme Court president Lord Reed, Lords Hodge and Lloyd-Jones and Lady Simler agreed, Lord Leggatt said: 'That misdirection undermined the fairness of the trial.' The jury direction errors made both convictions unsafe, Lord Leggatt said. He added: 'Mr Hayes was entitled to have his defence to the allegation that he agreed to procure false submissions as well as his denial that he had acted dishonestly left fairly to the jury. 'He was deprived of that opportunity by directions which were legally inaccurate and unfair. 'It is not possible to say that, if the jury had been properly directed, they would have been bound to return verdicts of guilty. 'The convictions are therefore unsafe and cannot stand.' Mr Hayes was jailed for 14 years after his conviction in 2015, which was later lowered to 11 years after an appeal, while Mr Palombo was jailed for four years in 2019. Lord Leggatt continued: 'When the flaws in the directions given at Mr Palombo's trial are considered in combination, it cannot safely be assumed that, without them, the jury would still have been bound to convict Mr Palombo. 'Thus, his conviction also cannot stand.' He added: 'Accordingly, both appeals should be allowed.' The Libor rate was previously used as a reference point around the world for setting millions of pounds worth of financial deals, including car loans and mortgages. It was an interest rate average calculated from figures submitted by a panel of leading banks in London, with each one reporting what it would be charged were it to borrow from other institutions. Euribor was created along with the euro currency in 1999 as a benchmark rate of interest for transactions in euros. In 2012, the Serious Fraud Office (SFO) began criminal investigations into traders it suspected of manipulating Libor and Euribor. Mr Hayes was the first person to be prosecuted by the SFO, who opposed his and Mr Palombo's appeals at the Supreme Court. The SFO brought prosecutions against 20 individuals between 2013 and 2019, seven of whom were convicted at trial, two pleaded guilty and 11 were acquitted. Mr Hayes had also been facing criminal charges in the United States but these were dismissed after two other men involved in a similar case had their convictions reversed in 2022.
