IT contractors operating north of the border may be relieved to learn that the Scottish private sector growth rate accelerated again in December.
The latest Bank of Scotland PMI showed that employment rose slightly for the second consecutive month and, for the first time in four months, Scottish firms recorded an increase in new business. The headline PMI was up 0.1 points to 51.2 in December, helping it to edge away from the 50 mark that separates expansion from contraction.
The biggest rise in new business was found in the business services sub-sector. Accountants and lawyers are included in this group, which rose from 51.2 in November to 54.5 last month.
New business growth increased for the second consecutive month in the financial services sector and ended the year with an Index reading of 54.6; up from 53.5 in November.
However, it would appear that the manufacturing sector is in decline. Key export markets are suffering due to the crisis in the Eurozone and the manufacturing output index dropped sharply to end the year at 44.5. In November it had been 51.1. Furthermore, new export orders decreased for the third month in succession.
Both manufacturing and services firms did report a marginal increase in headcounts in December, but growth in Scotland is still lagging behind the rest of the UK, which ended the year with a PMI of 53.2. Nevertheless, December’s figures do suggest that the country may not fall back into recession.
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Image: Scottish Flag by chanelcoco872
