Scotland’s private sector companies enjoyed robust growth last month and optimism is rising among small to medium-sized manufacturers and retailers across the UK, a trio of surveys have reported today.
Both business growth and employment in Scotland remained strong in October despite slipping slightly from a high in September, the Bank of Scotland said as it published its latest Purchasing Managers Index (PMI) report for the month of October.
Another survey of UK manufacturers found optimism about the business situation rose at the fastest pace since records began in 1988, according to the CBI’s latest SME Trends Survey.
The positive trends for jobs and the industrial sector has also spilled out onto the high street. More than half of retailers said they feel more confident about Christmas trading this year with the majority – 55% of those surveyed – expecting spending to increase compared with last year, a report by Barclays today has said.
Donald MacRae, chief economist for Bank of Scotland, said: “The Scottish economy is maintaining growth momentum, making the recovery more sustainable with each passing month.”
Services firms, including those in tourism and travel, recorded an increase in operating costs. But business activity in the sector continues to grow strongly, the report shows.
In Scotland, the bank found that manufacturing growth continues to lose momentum but has not impeded the rate of job creation.
Across the UK, the picture for manufacturers was brighter as new orders increased in the three months to October for the first time since July 2012. This was largely driven by domestic orders which rose at their fastest rate since January 1995, while export orders rose at their fastest rate since April 2011, CBI found.
Scottish manufacturers also saw an increase in orders in October, boosted by sales to foreign clients.
And while retailers are expecting greater sales this festive season, gift buying is expected to be driven by “practical” presents and people using mobile devices to shop.
Euan Murray, relationship director, Barclays Corporate Banking, Scotland, said: “Regional broadcast advertising trends are another indication of confidence in the Scottish retail sector with regional airtime revenues expected to be up 5% by the end of November.”