Back to main menu
Search
Search
Overlay

Key findings

  • Strongest fall in business activity in 11 months
  • Sustained decline in new orders
  • Employment growth remains resilient  

 

The latest Royal Bank of Scotland PMI® survey signalled a second monthly deterioration in private sector activity during October. Moreover, the headline Scotland Business Activity Index - a measure of combined manufacturing and service sector output - fell to 46.5 from 49.3 in September, indicating the sharpest decline since November last year. Worsening underlying demand conditions and the cost-of-living crisis were said to have contributed towards the latest fall in output. Additionally, the downturn across Scotland was more pronounced than that recorded for the UK as a whole. Despite souring business conditions, Scottish private sector firms increased their workforce numbers in October. The rate of job creation was the fastest in five months. and the quickest seen of all the UK nations and regions. Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: "With demand taking a step back over the last couple of months, the Scottish private sector displayed further weakness at the start of the final quarter. Spurred by sharper declines across both the manufacturing and services sector, business activity dropped at an accelerated pace in October. The downturn was the most pronounced in 11 months. Nonetheless, waning demand helped to assuage inflationary pressures, which were much weaker than this time last year. That said, rising costs for raw materials and renewed pressure from rising global prices meant that cost burdens, and in turn selling prices, still rose at historically elevated rates. However, employment trends remained resilient, with workforce numbers rising at the quickest pace in five months.”

 

Please see the report in full:

 

Royal Bank of Scotland UK Regional PMI (PDF, 277KB)

Choose the content you want

Get business inspiration and practical tips straight to your inbox

Sign up to emails
Update your preferences

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

Related articles

All Economics articles
scroll to top