Growth in Scotland’s private-sector economy slowed last month, but output and employment continued to grow despite the slowest rate of expansion recorded so far this year.
The Bank of Scotland’s monthly PMI report observed a “notable” rise in output from manufacturing and services firms last month, consistent with a continued improvements in fortunes.
The month fell behind the high levels of growth seen during February and March, with an acceleration in costs and average output prices.
Backlogs of work grew, as did payroll numbers.
Chief economist Donald MacRae said the study’s composite reading of 54.8 remained solid and continued to indicate strong growth. But he also noted a third consecutive monthly fall in the volume of new export orders, blaming a strengthening pound for the slowdown.
“The recovery is broad based, with output growing in both services and manufacturing sectors, accompanied by rising employment and a growing level of new business,” Prof MacRae added.
Finance Secretary John Swinney said: “We warmly welcome these figures which indicate Scottish private-sector activity expanded for the 19th consecutive month in April, with strong growth recorded in new business orders.
“After the PMI data for the first quarter of 2014 reported a continual expansion in output, the April reading suggests growth has continued into the second quarter of 2014.
“The survey results follow on from recent GDP and labour market statistics which both showed improvements over the last year. The recovery in Scotland’s economy is continuing, with growth widely forecast to accelerate this year.
“But there is no room for complacency,” he added.
Meanwhile, Scotland Office Minister David Mundell said: “This latest PMI report from the Bank of Scotland provides encouraging news.
“Firms hiring more staff, manufacturing orders continuing to rise and a growth in the level of new business for Scottish companies all point towards a Scottish economy that is continuing to recover.”