Economy hit by lower demand in Scotland

Broad-based weaknesses dragged on growth in the Scottish economy last month.

Analysis of the latest RBS purchasing managers index (PMI) shows new order growth eased back in November as the manufacturing sector went into reverse and growth in the service sector slowed.

Despite the loss in momentum, firms were more confident about their future prospects and continued to recruit.

Overall, the PMI measure in Scotland fell back from 53.4 in October to 52.2 last month.

Malcolm Buchanan, RBS Scotland board chairman, said: “In line with the slowdown seen for the UK as a whole in November, Scotland’s growth momentum also eased.”