Manufacturing growth boost

The sector is showing green shoots of recovery

Scotland's manufacturing output has risen to its highest level in two years, according to a new report.

A study by the Bank of Scotland said the monthly growth of output was at its highest level since June 2000.

The report, based on responses from executives in some 800 Scottish businesses, cites improved demand in the domestic market for the rise of new manufacturing orders.

The study also recorded growth in service sector activity for the second successive month in March, with one in seven businesses in the sector taking on additional staff.

The rise was encouraged by new business growth last month and rising demand for consumer and corporate services.

Upturn in exports

The efforts to minimise costs and raise productivity were cited as reasons for redundancies by many manufacturers who shed jobs last month.

Martin Ellis, group economist for the bank, said manufacturing output growth and continued expansion in service sector activity last month were positive signs for the Scotland's economy.

"The increase in the rate of new orders growth and the first upturn in manufacturing exports for over a year also points to a more evenly balanced growth picture," he said.

"Signs of an easing in the pace of manufacturing job losses and further growth in service sector employment are also evident and suggest that the current tightness in the labour market will continue."