Scottish Output Stagnates

The decline in the oil and gas industry is being felt, according to the latest Bank of Scotland report.

There was a marked fall in new business during February.

Economists say the trend is reflective of heightened uncertainty and reduced spending because of the falling price of oil.

However, figures show employment rose modestly and many companies are confident demand will pick-up in the coming months.

Donald MacRae, Chief Economist at Bank of Scotland, said: “Marginal growth returned to the private sector of the Scottish economy in February after a weather-induced contraction in January.  

"New business recorded a fall in both the manufacturing and services sectors but employment continued to rise overall.  This month’s PMI suggests the Scottish economy has regained some but not all of the growth momentum lost at the beginning of the year.”