Private sector growth ‘stable’ in September

Private sector growth in Scotland is “stable”, according to a Bank of Scotland survey published today.

The bank’s purchasing managers’ index (PMI) data for September showed a moderate pace of growth – the tenth month in a row of expansion.

Confidence hit a threemonth high, with 30.4 per cent of firms predicting higher business activity in 12 months time, 8.8 per cent forecasting a dip and 60.8 per cent expect- ing no change. Staff headcount continued to rise but slowed to the lowest rate of growth in the past four months of increasing staff numbers.

The devaluation of sterling and increases in raw material costs have increased cost pressures in the private sector, the survey found, with input price inflation at its quickest pace since May.

Fraser Sime of BOS said: “Scotland’s headline PMI remained unchanged from August at 52.2 in September, indicating stable private sector growth.”