Manufacturing output down

shown “remarkable resiliance”, compared with other parts of the UK.

But a significant and deepening decrease in the production of goods more than offset slow growth in the service sector, dragging theeconomydownnorth of the border, it adds.

BoS chief economist Donald MacRae says: “Growth in services activity did not quite offset a fall in manufacturing output, however, employment did grow in the month and the rate of decline in new orders eased.

“The Scottish economy is struggling to maintain growth momentum in the face of both the eurozone and global slowdowns.” KP Snacks – the company behind products including Hula Hoops, KP Nuts and Skips – could reportedly be sold to a Russian-UK private equity firm in a £450million auction.

Pamplona Capital Management is understood to have emerged as one of the favourites to win the UK’s second- largest branded snack company, which employs 1,500 staff.

Rivals include Permira, CD&R, TDR, CapVest and German family-run Intersnack, which are all expected to submit bids before tomorrow’s offer deadline.

KP Snacks is the junior partner within its parent group, United Biscuits, ultimately owned by private equity firms Blackstone and PAI. KP accounts for 20% of the total group, which is dominated by biscuit brands such as Jaffa Cakes and Penguin.

A 2010 sale of the whole of United Biscuits to China’s Bright Food fell through, leading to a breakup of the company.

Meanwhile, Burton’s – the maker of biscuits such as Wagon Wheels, Jammie Dodgers and Maryland cookies – has reported a boost to sales of 6% to £342million despite the rising challenge of supermarket own-brand rivals.