Confidence in the economy among some Scottish businesses is at its lowest level in two years, according to a Highlands and Islands Enterprise (HIE) report.
The Scottish government agency surveyed 1,013 firms in its area, which includes Highland, Moray, Argyll and Bute, Northern Isles and Western Isles.
Over the past six months, most said they had performed well or had been fairly steady but more than a quarter reported that they had struggled.
The report suggested 55% were not confident in the economic outlook for Scotland, the lowest since a figure of 58% in a similar survey carried out over October and November 2022.
HIE said the biggest challenges facing businesses were economic uncertainty, costs around doing business, legislation and regulation and access to skilled labour.
Just under half of employers said they did not have enough people or skills, with temporary or seasonal roles more challenging to fill than permanent positions.
Other findings from the survey included the fact that most businesses were investing in their workforce, including through offers of training, flexible working and making pay more competitive.
Martin Johnson, HIE’s director of strategy and regional economy, said: “Economic headwinds have become more challenging.
“Understandably this appears to be affecting business decisions about investment and growth.”
He added: “It’s a real credit to our business community that they have continued to innovate and adapt to continuing economic challenges, even though this has affected confidence and in some cases performance.”
The Scottish government recognised challenges to businesses, including rising energy costs and the UK government’s decision to raise employers’ National Insurance contributions.
Deputy First Minister Kate Forbes said: “While many levers to grow Scotland’s economy lie with the UK government, our Budget focuses on driving growth and investment.
“This includes providing a package of non-domestic rates reliefs worth an estimated £731m, including the Small Business Bonus Scheme, which is the most generous of its kind in the UK, taking over 100,000 properties out of rates altogether.”
