Umbrella company contractors north of the border could be benefiting from increased private sector business activity.
The latest Bank of Scotland purchasing managers’ index showed increases in business activity in both the manufacturing and services sectors last month. The study also revealed that Scotland witnessed the strongest increase in employment since February 2008 in May.
The chief economist at the Bank of Scotland, Donald MacRae, said May was the fifth consecutive month when the private sector economy in Scotland grew. So far this year there has been an increase in the number of new businesses, although that growth has slackened off recently showing just marginal expansion.
The rate of growth in Scotland still compares favourably to that in Northern Ireland and Wales but most English regions are now exhibiting stronger growth.
John Swinney, the Cabinet Secretary for Finance, Employment and Sustainable Growth, said that although the news was good for employment, Scotland cannot afford to become complacent.
He pointed out that it is essential for the public sector to continue investing when private sector demand is fragile. Output in the Scottish construction industry grew by 11.2% last year, compared to 6.0% across Britain and jobs in construction rose by 13.9% compared to a decrease of 2.4% across the UK as a whole.
He says this investment has provided Scotland with a strong foundation and if additional capital funding were made available for this financial year, this could be invested in housing, renewable and transport projects which would have an immediate impact on growth.
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Image: target by Mervi Emilia Eskelinen
