Bank of Scotland chief executive Donald MacRae announced that economic recovery in Scotland is ‘clearly quickening.’ His comment is backed up by PMI figures showing a significant improvement in Scottish employment figures.
While Scotland’s economic growth has been slower than the rest of the UK, a recent surge in productivity has given new optimism to Scottish businesses. New Office for National Statistics figures indicate that there are more Scots in the labour force than at any point in the past four years.
Scotland’s PMI (Purchasing Managers’ Index) was measured at 58.3 in August, based on data from the Bank of Scotland. The index, which reached 56.7 in July, shows that businesses in Scotland are recovering from the economic crisis at a rapid pace.
Most of the economic growth can be tracked to service firms, which are growing at a pace not seen since May of 2007. Manufacturers are also growing at a good rate, and export orders are currently at their highest level since May of 2012.
Scottish manufacturers are increasingly exporting products to countries outside of the UK and the European Union. Exporters have reported that some of their highest export growth rates were achieved in China, Saudi Arabia, and Brazil.
The excellent growth rate has helped Scotland reduce its unemployment rate and put years of mass unemployment in the history books. Unemployment rates were down for the ninth straight month, indicating an excellent long-term trend.
More Scots are employed than at any point in the past five years, according to the ONS data. Scotland’s rapid employment increase has been unmatched by any other part of the UK, with the sole exception of the West Midlands.
The excellent PMI figures and surge in employment have given new confidence to many of Scotland’s top employers. Mr MacRae has stated that Scotland’s economic growth could be enhanced by increased investment.
