Scotland’s economy returned to growth in March and showed the first upturn in output since last September, according to the latest Royal Bank of Scotland PMI data.
The seasonally adjusted Business Activity Index – measuring combined manufacturing and service service output – rose to 54.3 in March, up sharply from 44.1 in February.
Looser Covid-19 restrictions buoyed demand in some sectors, while hopes of a swift economic recovery pushed business confidence to the highest level since the research began in mid-2012.
But March also saw the return of some inflationary pressures.
Input costs rose at the most marked rate since August 2018, amid reports of supplier shortages as well as additional Brexit and coronavirus-related costs.
As a result, Scottish companies increased their charges at the quickest pace for nearly two years.
Following six straight months of decline, inflows of new work to Scottish private sector businesses levelled off in March.
Where an increase was recorded, this was linked to looser lockdown measures and some increased demand, although respondents to the…
