Scottish private sector output 'reaches 14-month high'

Scottish service providers recorded an eighth successive monthly rise in activity

Output from Scotland's private sector picked up last month after stalling at the end of 2019, according to a regular business survey.

The latest Royal Bank of Scotland purchasing managers index (PMI) found the "modest" expansion was driven in part by an increase in new business.

It also recorded a "mild" rise in workforce numbers.

The index, which measures manufacturing and service sector output, reached a 14-month high of 52.0 in January.

Any figure above 50 suggests expansion.

By sector, service providers recorded an eighth successive monthly rise in activity, with growth quickening from December.

Meanwhile, output continued to fall in the manufacturing segment, although the decline was only fractional overall.

'Positive sentiment'

RBS Scotland board chairman Malcolm Buchanan said: "Positively, firms' output expectations for the coming 12 months strengthened in January, with respondents linking confidence to a clearer outlook and hopes of improved demand conditions.

"Moreover, the level of positive sentiment was the highest since March 2019."

The survey is the latest sign of improving business sentiment about the economy.

Last week, a quarterly monitor by the Fraser of Allander Institute suggested the strongest outlook for business activity, investment and employment for six years.

And a monthly survey of Scottish recruitment specialists found permanent hiring was up sharply last month, with starting pay also rising.