Business News Round Up (12/02/2026)
Regional Growth Tracker reports Scottish business activity stabilises in January
The headline Royal Bank of Scotland Growth tracker– a seasonally adjusted index that measures the month-on-month change in the combined output of Scotland’s manufacturing and service sectors – rose from 48.1 in December to 50.0 in January. This signalled a stabilisation of private sector output following a four-month period of decline. 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.
NW equity investment tops £1.6bn as investors focus on fewer but larger deals
Equity investment into North West companies rose to more than £1.6bn last year, despite a fall in the number of deals, a new report has shown. The figures suggest investors are becoming more selective and refining their focus with fewer, but larger, deals and more capital deployed overall, according to Mercia Ventures. The data compiled by Beauhurst show there were 327 deals in the North West in 2025, down 13.7% on the previous year, although total equity investment increased by 3.03% to £1.63bn. In the UK as a whole, the number of equity investments fell by eight per cent to 5,887, while total investment rose to £24bn, up 3.43%. The report also reveals that first time equity investment in the UK rebounded sharply in 2025 after several years of decline and while fewer businesses received follow-on capital in 2025, those that did secured higher amounts.
KPMG: Scottish businesses enter 2026 with steady confidence and a strong focus on sustainability
Nearly nine in 10 (87%) private business owners in Scotland are confident about growth in 2026, according to KPMG’s annual Private Enterprise Barometer, in line with the UK average. The annual survey captured the perspectives of 1,500 privately owned businesses, including 119 in Scotland, from across various industries including professional services, finance, technology, industrial manufacturing and retail. Technology was cited as a key driver of this optimism, with half of Scottish businesses (50%) planning to introduce new technology over the next year, well above the UK average of 39%, underlining a commitment to innovation and the strength of Scotland’s growing technology ecosystem. Sustainability will also be a focus for firms in 2026, with 73% of Scottish businesses planning to review their use of sustainable materials to better understand their environmental impact – the highest proportion across the UK.
Two Scotland cities named as UK’s best places to live, work and invest
Scotland has emerged as the UK’s strongest region for residential investment opportunities, according to Colliers. In its tenth edition of Top UK Residential Investment Cities Report, Colliers has named Glasgow and Edinburgh as the top two cities to live, work and invest in. The report analyses 24 economic, educational, and environmental indicators across a range of UK cities, which provides a view of opportunities and challenges across each of the analysed cities and indicators. While some cities may perform well across economic indicators, other factors, such as those related to liveability or R&D, can show where it could improve. This year’s report is the first time Glasgow has taken the top spot, while Edinburgh remains the only UK city to appear in the top five every year since 2021.