Third report in days highlights Scots economic boom

Coming just a day after uplifting reports from both Bank of Scotland and accountants BDO, Capital Economics said Scotland was one of only four parts of the UK where the PMI economic indicator rose during July.

The report singled out the manufacturing sector for signs of significant growth north of the border.

However, the paper added that Scotland’s economic recovery continues to lag behind London’s, which continues to lead the UK overall.

Capital argued that the “economic recovery is not evenly spread, with London still leading the way”, but suggested “Scotland’s economy has finally started to recoup some of the ground lost at the start of this year” with regional differences expected to narrow in the coming months.

The report was released at the same time as two separate surveys showed business growth in Scotland is on the up.

Research from the Bank of Scotland, as well as a study by accountants and business advisers BDO, both revealed a rise in output levels.

But the latest Bank of Scotland PMI figures found private firms had reported the first fall in staffing levels since October 2011, with the BDO research also showing a drop in its employment index.