Scotland’s economic recovery is accelerating, according to a new survey by the Bank of Scotland.
The bank’s PMI survey, a composite indicator designed to gauge month-on-month changes in combined manufacturing and services output, showed record increases in business activity and new work in the private sector.
Employment also rose at its fastest rate in more than six years.
Services firms led the upturn, which extended to an 11th straight month in August. However, the pace of growth north of the border was still below the UK-wide average.
Last month’s data also showed a fresh survey-record increase in new business, with the rate of growth having accelerated fractionally since the preceding survey period.
Increased marketing efforts and improved market confidence were the key factors that drove up the level of new work, according to panel member reports.
Concurrently, Scottish manufacturers recorded the most marked rise in new export orders since May last year.
Scotland’s jobs market continued to benefit from the strong performance in the private-sector economy during August, with employment rising for the ninth consecutive month and to the greatest extent since June 2007.
Only the West Midlands recorded a more marked increase in staffing numbers than Scotland during the month. Despite this additional staffing capacity, August saw a further accumulation of outstanding business.
That said, the increase was the weakest in the current three-month sequence of rising backlogs.
The rate of input-price inflation in Scotland’s private-sector economy was unchanged for a second straight month in August, remaining below the long-run survey average but faster than across the UK as a whole.
The main contributory factor to cost inflation was higher fuel prices, according to anecdotal evidence.
Donald MacRae, chief economist at Bank of Scotland, said: “August’s PMI showed the economic recovery continuing in Scotland.
“The latest month’s results set two records for the survey, showing a sharp increase in business activity and new work accompanied by a strong rise in employment.
“Particularly welcome is the rise in new export orders to the highest level since May of last year.
“The pace of the economic recovery in Scotland is clearly quickening but would be further enhanced by firms increasing investment.”