Last time, we pointed to a glimmer of positivity. Despite everything the news has thrown at us since, we’re pleased to report it has not disappeared.

A quarter of business leaders say the last financial year has gone worse than expected. That is not dissimilar to six months ago, and an improvement on earlier editions, where closer to a third reported the same.

Almost the same proportion (24%) now say it has gone better than expected, while most report it has landed broadly where they expected. Taken together, it’s a balanced picture: neither exuberant nor despairing.

Looking back: pressure persists, tone softens

The economy continues to shape decision-making. 69% of business leaders say it is one of the biggest challenges facing their business. That is down from the much higher levels seen in earlier waves, but the theme still dominates.

Alongside that, a weak economy and competition remain key barriers. None of that is especially surprising. What is notable is how consistent this picture has been across the series: an accumulation of pressure.

There are signs that firms are proving more robust than the backdrop might suggest. More than half (54%) say their operations are somewhat resilient to external shocks.

That middle ground is becoming a theme. Across editions, businesses are not swinging between extremes. They are absorbing pressure and adjusting.

And while external factors continue to weigh heavy, Scottish businesses remain focused on what they can control: few are chasing expansion, and many more are tightening their belts.

Looking ahead: improving the engine

One of the clearest themes in this edition is internal transformation.
Digital transformation is a top priority for 38.5% of respondents. That aligns with what we have seen before. A focus on efficiency. Sharper operations. Stronger foundations.

By contrast, just 4.8% say entering new markets is a priority. That remains low. As in previous waves, most are focusing on evolution rather than expansion.

Hiring plans reflect the same mindset. 66% of business leaders say they do not plan to increase employee count in the next six months. That has been a consistent feature across The View.

There is, however, a shift in how leaders view the talent pool. In earlier editions, more described it as average than good. This time, over half (52%) rate it as good or excellent.

So the pool looks stronger, even if hiring appetite does not. That gap is worth watching – perhaps it points to some pent-up demand for talent?

Energy, resilience and unfinished progress

We continue to track sentiment on the broader policy and economic landscape.

Energy prices continue to cause some jitters. There is some protection in place, as most businesses have fixed prices. Among those that have not, 32% expect a moderate impact on profitability, while 24% anticipate a limited impact.

Even so, a second energy shock in four years focuses minds.

It also sharpens the conversation around resilience and, by extension, net zero. Progress here remains mixed. A quarter of business leaders say they have made limited progress. A further 20% say they have made no meaningful progress at all.

Confidence and the search for stability

Business leaders are looking for stability, confidence and the right conditions for growth. That has been a consistent message across the series.

Sentiment towards government reflects that. 39% say they are not very confident in the UK Government’s plans to improve the Scottish economy. That position has not shifted materially over time.

With Holyrood elections now concluded, attention will turn to how the results will shape business confidence in the months ahead. For now, the mood remains cautious. As ever, we will keep reporting the numbers and watching how sentiment evolves over time.

So, what does all this mean?

In short: the environment remains challenging, and sentiment has only shifted slightly across the series. There’s less pessimism than earlier waves, but we’re not entering unadulterated optimism either.

The bigger story is consistency. Businesses are showing resilience, staying practical and focusing on the fundamentals. And did we spot a glimmer of hope in the labour market? Are firms feeling more positive about talent in Scotland, and just waiting for their moment to hire? There’s plenty of business transformation taking place, so that could be a theme of future editions. Time will tell.

See you in six months.

Editor, The View