• Second successive month of job growth across Scotland
• Costs increase in face of rising energy and fuel prices
• Slowdown in growth across all sectors

A second month of employment growth offered some positivity during a modest month of business activity in March in Scotland.

Despite increased staffing costs, businesses across all sectors reported an upshift in recruitment as Q1 2026 came to an end.

But global economic challenges throughout the month led to a rise in higher energy and fuel costs, with private sector companies substantially affected.

According to the latest headline Royal Bank of Scotland Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of Scotland’s manufacturing and service sectors – fell to 50.1 in March from 50.9 in February, to indicate only a fractional rise in output. 

Commenting on the Tracker’s findings, Judith Cruickshank, Scotland Board Chair, Royal Bank of Scotland, said: 

"The latest Growth Tracker data shows that economic activity across Scotland was subdued in March, with output rising only fractionally and demand softening.

"Business confidence has also retreated, coinciding with a sharp rise in cost pressures. Notably, the latest survey highlighted the quickest increase in input costs for over three years. 

"While employment remains more resilient than the rest of the UK, the pace of hiring has slowed with employment growth recorded for a second consecutive month. Private sector firms generally anticipated an expansion of activity over the coming 12 months and new project streams, which supported hiring activity.”

Please see the regional reports in full:

Royal Bank of Scotland Regional Growth Tracker (PDF,  875.2 KB)

Royal Bank of Scotland UK Regional Growth Tracker (PDF, 1MB)