PACE OF RECOVERY SPEEDING UP

PRIVATE sector jobs in Scotland have risen at the fastest rate for six years, amid signs that economic recovery is ‘quickening’.

A new report published today suggests August saw the largest growth in business activity since records began in 1998. Export orders al s o increased to the highest level since May last year, according to the Bank of Scotland Purchasing Managers Index (PMI) survey.

Economists said the findings demonstrate that the pace of recovery north of the Border is speeding up.

However, with further Government cuts on the way, concerns remain for thousands of public sector workers. T he pace of growth in Scotland also trailed the UK-wide average last month.

The PMI is compiled from monthly replies to questionnaires sent to purchasing executives in around 600 manufacturing and service sector companies.

It registered at 58.3 in August, up from July’s 56.7. Anything above 50 constitutes growth, while 50 means no change and below 50 suggests economic contraction.

Donald MacRae, Bank of Scotland chief economist, said: ‘August’s PMI showed the economic recovery continuing in Scotland.

‘The latest month’s results set two records for the survey showing a sharp increase in business activity and new work accompanied by a strong rise in employment. Particularly welcome is the rise in new export orders.

‘The pace of the economic recovery in Scotland is clearly quickening.’

Services firms led the upturn, which extended to an eleventh straight month in August.

I ncreased marketing efforts and improved market confidence were the factors that drove up the level of new work, according to business leaders.

Employment rose for the ninth consecutive month and to the greatest extent since June 007.

Finance Secretary John Swinney said: ‘The Scottish Government welcomes these figures, which show continued strengthening in Scotland’s economy.’