There is growing evidence that the pace of recovery in both the Scottish and UK economies is gathering pace. In its monthly analysis of reports from purchasing managers, the Bank of Scotland has concluded that this that the pace of recovery is “clearly quickening”. The survey, known as the Purchasing Managers Index (PMI), found that employment in Scotland was rising at its fastest rate since 2007. However, while this is positive, it is worth noting that the pace of growth in Scotland is still below the average across the UK.
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Professor Donald Macrae
Bank of Scotland
This is the latest in a line of statistics which add to the belief that Scotland’s economy is well on the way to recovery. We reported just last month that the Office for National Statistics had produced data showing that the number of Scots in work had hit a four-year high earlier this year. There was also a report from the accountants EY which forecast that the export of Scottish goods would grow faster than those from the rest of the UK over the next four years.
The most encouraging aspect of the latest report concerned Scottish manufacturing which recorded the largest rise in new export orders since May 2012. According to some of those responding to the survey, there has been an encouraging increase in orders from clients from as far afield as China, Brazil and Saudi Arabia. Services too showed a considerable improvement in market confidence, with the largest increase in business activity since May 2007.
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Chancellor George Osborne
In the view of the Bank of Scotland’s Chief Economist, Prof Donald McRae, “the latest month results set to records for the survey, showing a sharp increase in business activity and new work accompanied by a strong rise in employment. Particularly welcome is the rising new export orders to the highest level since May of last year. The pace of the economic recovery in Scotland is clearly quickening but would be further enhanced by firms increasing investment.”
This report comes on the day when the Chancellor of the Exchequer, George Osborne, claimed that the UK economy was “turning a corner”. He claimed to have seen “tentative signs of a balanced, broad-based and sustainable recovery”, while stressing that it was still in the early stages with “plenty of risks” remaining. Mr Osborne made these comments in a speech in London ahead of the Conservative party conference later this month.
