GROSS domestic product (GDP) in Scotland grew at almost four times the rate of that of the UK in August, according to the latest figures.
August’s PMI survey from Bank of Scotland (BoS) indicated a moderate increase in Scottish private-sector output, although growth softened since the 33-month high recorded in July. The latest expansion was the second-fastest since July 2015.
Manufacturing output expanded markedly while service sector activity grew at a more modest pace. Price pressures remained sharp in August.
The figures were welcomed by the Scottish Government Economy Secretary Keith Brown, who warned that challenges persist due to the uncertainty of Brexit.
“The latest Bank of Scotland PMI figures signal further expansion in Scotland’s private sector output and employment in August, supported by growth in new business, whilst business confidence remains positive,” he said.
“These results are a further vote of confidence in the Scottish economy, with GDP growth almost four times that of the UK over the first three months of the year, and employment at a record high.
“While this is encouraging, Brexit uncertainty continues to cast a shadow over the future economic outlook, threatening jobs, investment and living standards. The Scottish Government will continue to use all of the powers at our disposal to grow the Scottish economy.”
The seasonally adjusted headline from the figures – a measure of the month-on-month change in combined manufacturing and services output – fell to 52.2 in August from 53.8 in July. That said, it remained above the average seen throughout 2017 so far and extended the current sequence of growth to nine months.
Job creation in the Scottish private sector was solid, extending the run of growth to three months. Companies reported that they had hired additional staff to meet rising output requirements.
Fraser Sime, regional director of BoS Commercial Banking, warned that despite the upturn, confidence about future growth prospects softened to a four-month low, indicating a “muted level of optimism from businesses operating in Scotland”.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here