Private sector activity continues to slump
Scotland’s private sector downturn continued last month with jobs cut at a “marked” rate, according to the latest Royal Bank of Scotland snapshot.
The bank’s business activity index – a measure of combined manufacturing and service sector output – registered 37.1 in June, an improvement on May’s figure of 21.1 but still well within contraction territory.
Private sector firms reported a further reduction in total new orders during June, extending the current sequence of contraction to four months.
Businesses continued to cut workforces at a marked rate last month, amid reports of further redundancies and layoffs as a result of the coronavirus pandemic. The rate of job shedding was the softest for three months, however.
The future output index remained above the 50 mark for the second month in a row during June, to signal overall confidence at private sector firms with regards to activity over the year ahead.
Malcolm Buchanan, Scotland board chair at RBS, said: “Business activity across the Scottish private sector continued to decline markedly during June, with total new orders also falling sharply again.
“That said, the rates of decline eased significantly, with both indices recording record month-on-month rises from May, as looser restrictions allowed parts of the economy to restart.
“Services were worse affected, with the reductions in activity and new orders faster than those seen for goods-producing counterparts.”