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Business activity survey reports pick-up in private sector

Business activity survey reports pick-up in private sector

Business activity in Scotland saw a modest rise last month despite new orders continuing to fall.

The latest Bank of Scotland PMI report also found private-sector employment had risen for the first time since July with the manufacturing and service sectors hiring additional staff after an upturn in work.

The situation was in contrast to the UK-wide jobs situation, where employment has continued to fall.

The PMI study compiled from data provided by 600 Scottish firms also found that levels of new business had decreased for the third month running.

The downward trend had been fuelled by the sharpest fall in new orders for manufacturing firms since the summer of 2009.

Firms also reported a significant decrease in outstanding business with goods producers and service providers both stating that levels of work-in-hand had dropped during November.

The study also pointed to increased cost pressures on Scottish firms during the month energy and food prices were both cited as particular issues while average prices being charged by companies for goods saw a marginal rise.

Donald MacRae, chief economist at Bank of Scotland, said the Scottish economy is showing resilience despite the uncertainties in the Eurozone and the problems facing the wider UK economy.

He said: ”November’s PMI was positive for the 11th month of this year, suggesting the private sector of the Scottish economy continues to grow across manufacturing and services.

”Both new orders and new export orders fell in the month, highlighting the challenge of maintaining growth in the face of the global slowdown.”