PMI finds Scottish business activity stagnated in March

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The PMI indicated that bureau prolongation continued to arise “at a conspicuous rate”

Scotland’s private zone economy stagnated final month as a downturn in services activity equivalent enlargement in prolongation production, according to a consult of purchasing managers.

The Bank of Scotland’s latest PMI found there was “muted” direct for products and services in March.

Business activity in a services zone dipped for a initial time in 4 months.

However, bureau prolongation continued to arise “at a conspicuous rate”.

The news also remarkable a “fractional” arise in employment.

‘Lost momentum’

The PMI – that measures changes in total prolongation and services outlay – slipped to 50.1 final month, down from a 19-month high of 51.7 in February.

Any figure above 50 suggests expansion.

Firms, quite in manufacturing, reported that unlucky sell rates had led to an boost in submit costs. Higher salary were also reported to have pushed adult handling expenses.

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Getty Images

Image caption

The PMI indicated that activity in a services zone dipped for a initial time in 4 months

The consult found that companies continued to respond to aloft handling costs by augmenting their possess charges.

Fraser Sime, informal executive for Bank of Scotland Commercial Banking, said: “The mercantile upswing of Scotland’s private zone economy mislaid movement during a finish of a initial quarter.

“A pale direct for products and services resulted in usually a extrinsic boost in new business inflows, which, in turn, caused activity levels to broadly stagnate.

“The altogether summary is some-more balanced, however, as businesses combined jobs over a month and view remained broadly positive.

“These developments advise that a Scottish economy will expected lapse to enlargement as we conduct into a second quarter.”

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