Scottish businesses are reporting that business activity in the country is rising at its fastest rate in more than six years.
According to the latest Purchasing Managers Index (PMI), the last quarter saw a sharp acceleration. The report comes on the back of further good news in the month
In recent weeks, the motor industry in Scotland has predicted strong future sales. Ernst & Young has also increased its growth prediction for the economy by 0.7 per cent.
The chief economist for the BoS, Donald MacRae, welcomed the results of the report, saying:
“Both the services and manufacturing sectors recorded rising activity and output, accompanied by growth in employment.”
However, he did warn businesses over their foreign trade. The Eurozone crisis is still having an effect on exports, despite the promising good news overall.
“This growth spurt is domestic-based, with new export orders outwith the UK falling for the second successive month.
“Nevertheless, these results provide more welcome evidence of the growing strength of the recovery in the Scottish economy.”
The Bank of Scotland PMI report also showed that new workloads were taken on at a faster rate. In turn, this resulted in levels of recruitment rising.
In order to meet the steep payroll demand, many firms invoked invoice financing facilities. Such funding options ensure work is delivered on time despite longer pay terms for new business.
The boost to employment was at its fastest rate since April last year, and it is the 13th week in a row that Scottish firms have taken on more staff.