Scots Business Confidence On The Up

Business growth in Scotland is on the up, according to two separate surveys.

Research from the Bank of Scotland, as well as a study by accountants and business advisers BDO, both revealed a rise in output levels.

But the latest Bank of Scotland PMI figures found private firms had reported the first fall in staffing levels since October 2011, with the BDO research also showing a drop in its employment index.

Martin Gill, head of BDO LLP in Scotland, said: Political certainty has bolstered short-term business confidence. The result is a thriving economy, despite global economic unrest.''

Donald MacRae, chief economist at Bank of Scotland, said the PMI figure for July - which is based on survey data from approximately 600 companies - was the highest so far this year.

Activity grew in the services sector while manufacturing output showed a welcome return to growth after the contraction of the last three months,'' the expert said.

New orders rose in all sectors while the pace of decline in new export orders slowed. Although employment fell the Scottish economy continued the recovery from the slowdown in the first quarter of the year. Moderate growth is expected for the rest of 2015.''

The Bank of Scotland PMI report for July found private firms reported further growth of output and new orders''.

In the service sector the amount of new business placed with companies grew for the fifth month in a row, while the manufacturing sector reported a rise in output in July, reversing the trend for the past three months.

Manufacturing firms also saw a growth in new orders last month, following a decline in June.

But the report said: Scottish private sector firms reported the first decline in staffing levels since October 2011 during July, largely a result of job shedding in the service sector.''

While it said that some companies linked job cuts to internal restructuring efforts'' it added that therate at which workforce numbers were reduced was modest''.

BDO's research also indicated a growth in output but a fall in employment levels, with the output index up to 104.4 in July - an increase on the previous month's total of 104.1 and higher than the 103.7 recorded 12 months ago.

The latest employment index was recorded at 108.4, compared to 109.1 in June and 109.6 in July 2014.