'Mild Signs' Of Economic Recovery

Scotland's economy has shown mild signs of recovery, with levels of employment and new business numbers showing modest increases.

Figures released by the Bank of Scotland show an overall reduction in business activity last month, with growth in manufacturing offset by a fall in activity in the service sector.

But expansion has provided employment opportunities, particularly for business service companies.

The seasonally adjusted headline Bank of Scotland PMI – a single-figure measure of the month-on-month change in combined manufacturing and services output – registered 49.4 during March, down from 50.2 in the previous month. That marked the second time in the past three surveys that a fall in output has been recorded, although the latest decline was marginal. 

Donald MacRae, Chief Economist at Bank of Scotland, said:

“March’s PMI confirmed a poor month for the private sector of the Scottish economy with marginal growth in manufacturing output not quite offsetting a slight fall in services activity. The government sector will have to bear the brunt of growing Scotland’s economy in January to March this year. 

"But recovery is on the way with levels of new business increasing, employment rising in all sectors and the oil price up 20% from January’s low.”