Mixed news for nation’s private sector economy

Scotland’s private sector economy cooled last month but businesses remain confident about future output, a key survey reveals today.

Bank of Scotland’s purchasing managers’ index fell in November to 50.2, from 52.7 the month before. While the figure – a measure of the month-on-month change in combined manufacturing and services output – was the weakest since March it remains just inside growth territory. In line with the trend for output, new orders placed with Scottish private sector firms increased at a weaker pace.

However, businesses increased employment while there was a stronger degree of confidence regarding future output.

Fraser Sime, regional director of Bank of Scotland commercial banking, said: “Weaker output growth coincided with broadly flat new business. That said, firms added to their payrolls for a sixth consecutive month.”