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Signs of growth in private sector for first time in three months, finds RBS PMI

Business activity in Scotland's private sector rose for the first time since August, according to a new report.

The latest Royal Bank of Scotland Purchasing Managers' Index (PMI) recorded an increase in private-sector output in November. The fastest increase in workforce numbers since April and a small rise in orders for the service sector were said to be key to the growth, outweighing a downturn in manufacturing.

The Royal Bank of Scotland's Activity Index, a seasonally adjusted headline figure combining manufacturing and service sector output, was 50.9 in November, up from 49.6 in October.

Malcolm Buchanan, Scotland board chairman at the Royal Bank of Scotland, said: "November survey data highlighted some positive signs for the Scottish private sector. Output rose for the first time since August, with quicker services growth outweighing the manufacturing downturn.Meanwhile, new business increased for the first time in four months, with the rate of expansion in Scotland second only to London across the UK."

He added: "Nevertheless, uncertainty continued to subdue demand, with client hesitancy reportedly weighing heavily on both output and activity. A clearer outlook is required to boost demand and for the Scottish private sector to gain further momentum in the closing stages of the year."

The Royal Bank of Scotland PMI is compiled by IHS Markit from responses to questionnaires sent to a panel of around 500 manufacturers and service providers.

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