An October service-sector boom helped Scotland’s encouraging economic performance continue into the final quarter of the year, fresh research has revealed.
The Bank of Scotland’s monthly purchasing managers’ report, published today, shows how last month’s continued expansion in private-sector output was primarily centred on services, with more modest growth in manufacturing.
But new orders remained strong, and the bank also said job creation was both solid and broad-based by sector in the period.
Chief economist Donald MacRae said the result of the study remained one of the most encouraging since it began 15 years ago, despite being marginally down on the all-time highs posted in August and September.
He said three months of very strong index readings pointed towards a recovery gaining strength.
“October’s PMI was the fourth-highest since the survey began in 1998, suggesting the private sector of the Scottish economy entered the final quarter of the year enjoying robust growth,” Prof MacRae said.
“A steep rise in new work was accompanied by a modest but welcome increase in new export orders. Both the services and manufacturing sectors created more jobs.
“The Scottish economy is maintaining growth momentum, making the recovery more sustainable with each passing month.”
The rate of inflation of input prices facing businesses dipped slightly, but nevertheless continued to outpace the rate of growth in output values.
Food and utilities were the biggest risers, while the cost of materials proved the biggest concern to manufacturers.
The PMI also found a “steep rise” in the level of new work stretching a pattern which had already run for 10 months.
Last month’s increase was less marked than previously, but included a modest rise in new export orders.
More work extended a pattern of job creation, but pressure remained on capacity leading to increasing backlogs.