The private sector economy has continued to grow and shows the recovery is “gaining momentum” in Scotland, according to a new bank report.
Growth for both output and new business in September maintained record-equalling highs, set in August, in the latest Bank of Scotland PMI survey.
This indicated “sustained strong growth” in business activity for both manufacturing and service sectors.
Activity in the private service sector rose at the joint-fastest rate since March 1998 while September also saw an increase in goods production, but this was at a slower rate than in the previous month.
There was a further boost to business activity with a growth in new business for the tenth successive month with the latest figures matching August’s record.
Employment levels in the private sector economy also rose at an unchanged rate, giving an overall figure that was in line with the UK average.
The increase was greater for the service sector than manufacturers where the rise in job creation was the weakest in four months.
The rate of input price inflation in Scotland was greater than the UK average and the fastest in five months due to higher costs for food, fuel and labour, but there was only a marginal increase in output prices.
Donald MacRae, chief economist at Bank of Scotland, said: “September’s PMI showed the private sector of the Scottish economy continuing to expand across both manufacturing and service sectors providing further evidence of the strengthening of the recovery.
“Output and new business rose at survey-record equalling rates accompanied by growing employment and rising new export orders.
“The PMIs of the last six months suggest the Scottish economy not only grew in quarter two this year but saw that growth accelerate in quarter three. The recovery is gaining momentum.”
Enterprise Minister Fergus Ewing said: “These figures show a continued strengthening in Scotland’s economy.
“September’s PMI maintained August’s record rate of expansion in business activity in Scotland. This was the twelfth consecutive month of private sector output expansion, with growth seen in both services and manufacturing.
“We are seeing on-going signs of recovery and Scotland continues to outperform the UK on our employment rate, youth unemployment rate and annual output growth.
“We will continue to build on that momentum, supporting an investment-led recovery, taking action to boost jobs, create more economic opportunities and enhance business confidence.
“We have a wealthy and productive country which has the potential, with the full economic and fiscal powers, to be a successful independent nation.”