The latest research by the Bank of Scotland has suggested that economic growth in Scotland is recovering, leading its chief economist to claim it is showing signs of lasting.
Following the latest Purchasing Managers Index (PMI) survey by the bank, Donald Macrae said:
“These results show the recovery in the Scottish economy is becoming more strongly embedded with every passing month.”
The results indicated there has been the fastest employment increase in over a year, whilst manufacturing output also grew for the second consecutive month.
It is a sign that companies in Scotland are starting to regain confidence, with many having shored up their financial strategies by working with Glasgow invoice discounting providers.
Introducing such strategies has also allowed many firms to attract new business, with cash flow improvements allowing products and services to be delivered. The results of the PMI backed this up, as levels of new business in Scotland increased for the sixth month in succession.
Confidence across all sectors was also indicated, with domestic demand largely behind the increases experienced.
The improvements are having a knock on effect for the job market too, as the number of positions being created rose for the third month in a row. In May, over 15 per cent of Scottish firms took on new staff.
Whilst domestic growth is a promising sign, falling exports are still a concern which needs attention. This is largely down to the continuing uncertainties in the Eurozone, however, which the whole of the UK is becoming increasingly affected by.