Private sector business activity increases in Scotland

Date: 13th June 2011

Small businesses operating in Scotland's private sector could be among those encouraged by the findings of a recent report.

The latest purchasing managers index (PMI) from Bank of Scotland has revealed "marginal rates" of new businesses in both the manufacturing and services industries.

Figures from the report also showed that demand for workers is on the rise, with the strongest employment increases seen since February 2008.

Donald MacRae, chief economist at the Bank, said: "The Scottish private sector economy enjoyed a fifth consecutive month of growth in May, although the rate of expansion has moderated.

"New business inflows have increased every month of 2011 so far, however the incoming new business index fell sharply during the latest period, to a level indicative of only a marginal rate of expansion."

Data from the PMI also revealed that while the overall rise in Scotland compared favourably with declines in Wales and Northern Ireland, it was weaker than the growth rates seen in most English regions.

Posted by Jacob Williams