Scots economic recovery is still on hold

The Scottish economic recovery remains on hold, according to figures released today.

Economic activity was described as "broadly static" during October in the latest Bank of Scotland Purchasing Managers' Index (PMI) report.

However, it said the rate of new business declined for the first time in nine months despite firms continuing to add to their workforces.

Donald MacRae, chief economist at Bank of Scotland, said: "The expansion in business and financial services, the strongest for five months, was very welcome. Scottish firms continued to add to their workforces during October, although the rate of job creation remained weak.

"The Scottish economy has slowed but has not gone into reverse."

The report showed activity in the services sector fell for the second month in a row - attributed to a decline in travel, tourism and leisure.

A mild rise in manufacturing output was noted after a slight fall in September's report.

The marginal decline in the Scottish economy contrasts with the trend seen across the UK as a whole, where a mild acceleration of growth was recorded.