Out­put in Scot­tish pri­vate sec­tor in­creases

The Pak Banker - - BUSINESS -

LON­DON: In Novem­ber, out­put in the Scot­tish pri­vate sec­tor in­creased al­beit at the soft­est pace since March. Weak ac­tiv­ity growth co­in­cided with a softer rise in new busi­ness.

How­ever, busi­nesses in­creased em­ploy­ment in line with a stronger de­gree of con­fi­dence re­gard­ing fu­ture out­put. The sea­son­ally ad­justed head­line Bank of Scot­land PMI® - a sin­gle-fig­ure mea­sure of the month-on-month change in com­bined man­u­fac­tur­ing and ser­vices out­put - de­clined in Novem­ber to 50.2, from 52.7 in Oc­to­ber. The pace of ex­pan­sion was mar­ginal and the weak­est since March.

New or­ders placed with Scot­tish pri­vate sec­tor firms in­creased at a weaker pace. Growth of new busi­ness was mild and eased to the slow­est across the cur­rent 12-month pe­riod of ex­pan­sion. Busi­nesses re­mained up­beat to­wards fu­ture growth prospects de­spite slug­gish growth in out­put and de­mand. In fact, the de­gree of op­ti­mism edged higher across the pri­vate sec­tor. Amid greater busi­ness con­fi­dence, firms added to their pay­rolls for a sixth con­sec­u­tive month in Novem­ber. How­ever, the rate of job cre­ation across the Scot­tish pri­vate sec­tor was mod­est and eased slightly.

Twenty per­cent Scot­tish home­own­ers plan to take their next step on the prop­erty lad­der within the next five years but face a num­ber of bar­ri­ers.

A twenty-one per­cent of home­own­ers say that the in­abil­ity to find the right prop­erty within bud­get is the key blocker for buy­ing their next home, ac­cord­ing to re­search from Bank of Scot­land. High stamp duty and the over­all cost of mov­ing are caus­ing the num­ber of peo­ple think­ing of mov­ing house to fall. The re­port found that in­creas­ing house prices (19%), the cost of mov­ing (19%) and stamp duty costs (16%) are all cited as is­sues that stand in the way of home­own­ers mak­ing that next move. And broader fi­nan­cial pres­sures may also be con­strain­ing mar­ket ac­tiv­ity, with one in three (35%) also stat­ing that they would need a sig­nif­i­cant pay rise to help make the jump.

Aside from fi­nan­cial fac­tors, the whole house mov­ing process is also caus­ing more peo­ple to hang on to their prop­er­ties in­stead of sell­ing. Two fifths (43%) of home­own­ers across Scot­land also said that the process of find­ing a suit­able home dis­cour­aged them from look­ing to move. Along­side, be­ing up­rooted from their lo­cal com­mu­nity (27%), deal­ing with es­tate agents (18%), and the un­cer­tain eco­nomic out­look (15%) was also blamed.

Other ar­eas with mod­est in­creases in­clude Perth and Kin­ross (2), Dundee City (1), High­lands (1) and Mid­loth­ian (1). East Loth­ian and Glas­gow City are the two ar­eas with the next high­est num­ber of mil­lion pound prop­erty sales from this mar­ket seg­ment and saw no change from this time last year, both ac­count­ing for 8% of Scot­tish sales.

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