• Output stabilises after falling in prior four months
• Yet inflationary pressures and job losses continue
• Judith Cruickshank, Scotland Board Chair, Royal Bank of Scotland, said the Growth Tracker data showed that businesses “continued to face challenges” in January yet still showed “hope of conditions improving” in 2026

Sector data indicated that service providers recorded a fresh rise in activity in January. Respondents attributed the uptick to new customer wins and the commencement of projects. However, manufacturing output contracted, albeit at a slower rate. 

The latest survey also signalled continued cautious optimism at Scottish private sector companies regarding the 12-month outlook for output. Panellists stated that planned product releases and expansion into new markets were forecast to drive growth.

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

“Our data show that Scotland’s business community continued to face challenges at the start of 2026, with demand falling and inflationary pressures remaining stubborn.

“Business activity has stabilised, and we once again saw growth in services. However, we are not yet back to growth, manufacturing continues to contract and our overall performance was not as strong as many other nations and regions. 

“Despite this, our Growth Tracker found that Scottish businesses continued to show hope of conditions improving over the next 12 months.”  

Please see the regional report in full:

Royal Bank of Scotland Regional Growth Tracker (PDF, 1541KB)