Private sector output shows first rise for three months
Output from Scotland's private sector has increased for the first time in three months, according to a report.
Output from Scotland's private sector has increased for the first time in three months, according to a report.
The rate of expansion was the fastest for 14 months and firms also recorded higher levels of new business and employment, the Bank of Scotland found.
The latest purchasing managers' index (PMI), which keeps track of the month-on-month changes in combined manufacturing and services output - rose to a 14-month high of 51.2 in September, up from 49.1 in August.
Despite an increase in business costs, the PMI figure rose for the first time in two months.
Nick Laird, regional managing director at Bank of Scotland commercial banking, said: "An upturn in Scotland's private sector was signalled in September, as the headline index rose to a 14-month high.
"The improvement in the economy was equally shared between service providers and manufacturers, who both registered modest increases in output during the month.
"Demand for Scottish goods and services also rose, highlighted by a rise in new business. On another note, firms faced the fastest increase in input costs for 33 months, putting pressures on firms' margins as we approach the end of the year."
However, statistics released by KPMG showed the number of failing Scottish businesses has increased in the past three months amid the "sustained uncertainty" of the Brexit vote.
Figures to the end of September show the number of corporate insolvency appointments increased by 30% in three months - from 177 to 230 - compared to the same period in 2015.
Over the same period, administration appointments, which usually involve larger businesses, increased by 42% - from 19 to 27 - and the number of liquidation appointments, which tend to affect smaller businesses, increased from 158 to 203 - a rise of 28%.
But compared with the period between April and June 2016 there was actually a decrease in the number of insolvency appointments and liquidations.
Blair Nimmo, head of restructuring for KPMG in the UK, believes the EU referendum result has fed into longer term economic uncertainty over the past year.
He said: "Business failures continue to rise amidst well-documented challenges facing the oil and gas sector and as a result of sustained uncertainty caused by the EU referendum.
"While it would be easy to blame an immediate post-Brexit rise in insolvencies directly on the result of the vote in June, in reality the statistics are more reflective of the long-term impact uncertainty has had on the economy in the past 12 months or so.
"This is evidenced by the fact total corporate appointments from July to September actually fell in comparison to the quarter immediately prior to the referendum. A similar trend was seen in the lead up to and following the Scottish independence referendum in September 2014.
"Even now, we remain in uncharted waters, and uncertainty will continue to influence and shape the business landscape. Nevertheless, overall confidence in the economy is high, and as our recent CEO survey findings reveal, business leaders are largely positive about the country's future and of their businesses.
"In order to continue to grow and thrive in a post-Brexit environment, companies must ensure they plan appropriately so they can adapt to any changes in market conditions, particularly those who trade with the EU."