A new survey of purchasing managers in Scotland has shown that market conditions are taking a turn for the worse in the country, with the possibility of economic contraction increasingly likely.
The monthly report, on behalf of the Bank of Scotland, found that both rising costs and a slump in order volumes played a big part in the results. Orders fell for the fifth successive month, whilst a lack of work in the pipeline was also reported.
The rising cost of fuel was said to be a major factor in the challenges faced by companies too, whilst further issues were seen from the rising price of other raw materials.
The news is seen as particularly concerning in light of the national figures showing industrial production falling off in October. The report, conducted by financial information services company Markit, is usually more promising than other surveys.
Fears of a ‘triple-dip’ recession have even been mooted in Westminster as a result.
Talking about the results, the Bank of Scotland’s chief economist Donald MacRae said:
“The private sector of the Scottish economy grew marginally in November with growth in the service sector offsetting a fall in manufacturing output. The Scottish economy is showing the strains of maintaining growth momentum against a background of weak domestic and international demand.”
Much of this growth is being seen by companies moving to different commercial finance in Scotland.
MacRae went on to say that despite the challenges face, Scotland was able to maintain employment levels.