Scottish Private Sector Growth Quickens In January

Scotland's private sector expanded at a slightly faster rate in January, underpinned by rise in service sector activity, data from a survey by the Bank of Scotland and Markit Economics showed Monday.


The seasonally adjusted purchasing managers' index (PMI) for the private sector, which measures activity in both the manufacturing sector and the service sector, rose to 51.4 in January from 51.2 in December. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline.
New business in the private sector increased solidly for the second month in a row, and the rate of growth accelerated modestly. Service providers registered stronger increase in new orders.

Employment is the Scottish private sector increased at a slightly faster rate during the month, reflecting the increase in new orders. Backlogs of work dropped slightly in January. Input price inflation eased to the weakest since September 2010. Service sector firms reduced their charges for the fourth time in five months.