Tuesday , July 27 2021

Scotland's manufacturing sector returned to modest growth, but services continued to expand in general.



The growth of Scotland's private sector economy remained stable in October and re-expanded as a whole in the UK, showing a closely monitored survey.

However, the uncertainty over Brexit played an important role in the optimism of the expectations of higher business activity in the 12-month period, when Scottish companies were the lowest in a year, according to the report of the PMI (index of purchasing managers) released by Royal Bank today. Scotland

The output index, which measures the activities of the seasonally-adjusted production index in Scotland in the production and service sectors, remained unchanged compared to the previous month at 53.4 in October and remained well above the 50 level, which indicates a separate expansion due to the contraction.

With the UK output index dip, reading 53.4 for Scotland meant that the enlargement in the north of the border overcame the whole as a whole, to signal slower growth.

Sebastian Burnside, chief economist at the Royal Bank, underlined that Scottish growth surpassed the United Kingdom as a whole in the last four months.

Commenting on the latest PMI report findings, Burnside said: side Basically, everything outside Scotland has worsened. What would normally be like that – Scotland's score was the same – a rather impressive performance. "

He added: gör The growth of Scotland is much stronger and more stable, more resilient than other parts of the UK, especially now that it is very happy to see it. This is the third month of the fourth, where the number of headings is now higher than the UK. Therefore, we are maintaining a good run here. "

Scottish production activity, which was sunk in September, returned to marginal growth last month, resulting in an output index of 50.2 in October. The services sector continues to be the main driver of growth in Scotland, with output index of 54.2 last month.

The survey shows that the growth of new business areas for the private sector in October is faster than in any part of Scotland.

Referring to the fall in optimism about the future output of Brexit uncertainty, Burnside particularly stressed concerns about companies' out-of-date results as the release date for next March stands.

He said: daha The opportunity for a deal was the real thing for most jobs. Ayı The end of March without a deal is something that intensifies people's emotions more than four or six months ago. I guess that's a big part of what's going on. "

Burnside expressed concern about companies' lack of investment.

He said: yatırım The more and more people we worry about invest less and invest less in us. This will make future growth more difficult.

"I think there may be a greater restriction on this economy."

The survey shows that the rate of increase in overall employment among private-sector companies in Scotland has reached its peak in four months in October and is faster than the speed in the United Kingdom as a whole.


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