Scotland’s economic recovery continues but slowed marginally last month, according to the latest survey of purchasing managers by the Bank of Scotland.
The monthly study found growth in output dipped during July, but “nonetheless remains sharp”.
The keenly-watched PMI report also recorded a new record rise in fresh business orders and the steepest rise in output prices in two years.
Bank of Scotland chief economist Donald MacRae said the index reading of 56.7 was down slightly on June’s 73-month high of 57.0, but indicated continuing expansion in the private sector.
He said the survey found services flourishing and exports up, with overall figures signalling that “the Scottish economic recovery continues”.
He called for firms to commit to more investment to guarantee further growth in the coming months.
“Both manufacturing output and services activity increased in the month, with services firms experiencing the fastest rise in new work in more than 15 years,” Professor MacRae said.
“July saw a return to growth in new export orders for the first time in five months. Business confidence is clearly on the increase, with employment rising for the eighth month in a row.
“The recovery will become even more embedded if firms build on this 10-month run of positive PMIs by increasing investment.”
July’s growth came as Scottish manufacturers reported their fastest rate of goods production for 18 months. New work rose sharply, with an improvement in market confidence ought to be behind the increase in demand.
Employment also grew for the eighth successive month, and the report’s authors anticipate that more jobs could be created in the coming months as orders continue to accumulate.
Input price inflation stabilised, while stronger demand for products and services encouraged firms to raise their output prices.