Bank of Scotland PMI shows ‘weather-related jolt’ to business activity

Business activity in Scotland’s private sector fell at the start of the year, according to the Bank of Scotland.

Its purchasing managers’ index survey reported severe bad weather weighed on activity, contributing to stagnation in both new business and employment.

Average output prices fell as cost pressures subsided to the weakest since mid-2009.

Donald MacRae, the bank’s chief economist, said: “Activity dropped in both the manufacturing and services sectors, but levels of employment and new business were maintained.

“New export orders showed an encouraging increase.

“The first month of 2015 has given the recovery in the Scottish economy a sharp, weather-related jolt,” he added.

He said this was reminiscent of the bad- weather effect of four years ago.