By Ian McConnell
SCOTLAND achieved the third-fastest growth among the 12 nations and regions of the UK in September, even though its expansion eased to its slowest in five months as manufacturing went into reverse, a survey shows.
Employment growth north of the Border was also the third-fastest of the 12 UK nations and regions covered by the Royal Bank of Scotland survey, published today.
This survey, which covers the private-sector economy, also flags intense inflationary pressures fuelled partly by Brexit. The rate of increase of costs for Scottish companies was last month the fastest since July 2008, “and rapid”.
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The business activity index for Scotland, a composite measure of manufacturing and services activity, fell from 58.1 in August to 56.1 last month on a seasonally adjusted basis, remaining well above the 50 no-change mark and continuing to signal sharp expansion. Scotland’s private-sector economy has now expanded for seven consecutive months, according to the survey.
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Royal Bank noted a “sustained upturn in services was slightly offset by a renewed fall in manufacturing output”.
The survey shows a 16th consecutive monthly rise in costs facing Scottish companies.
Royal Bank said: “Greater material, fuel and wage costs, logistical issues, Covid-19 and Brexit were all cited as drivers of cost inflation.”
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On the back of this, Scottish private sector firms raised their average charges for the 11th month in a row in September.
Panellists attributed the latest uptick to the “partial pass-through of greater costs to clients”, Royal Bank of Scotland noted, with the rate of output price inflation the highest since the survey began in November 1999.
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