Job cuts accelerated to a six-month high in the first month of the year as growth remained in “low gear”, according to a report.
The Bank of Scotland’s monthly purchase managers index – which measures performance in manufacturing and services by gathering data from about 600 companies – found the Scottish private sector remained in “growth territory”, with January’s figure of 50.3 unchanged from December.
The survey recorded a weak expansion in output for a second successive month, driven by a faster rise in new business volumes.
Scotland’s service providers were behind much of the growth while goods producers reported a contraction.
The report found the rate of job shedding had accelerated to its fastest since July 2015.
It said: “Job cuts were evident in both the manufacturing and service sectors with some panellists linking the fall to a combination of higher wage costs and the downturn in the oil industry.”
Alasdair Gardner, Bank of Scotland regional managing director for Scotland, said: “Growth in Scotland’s private sector remained in a low gear during the first month of 2016 as service providers continued to outperform their manufacturing counterparts.
“Challenging market conditions in the oil and gas sector allowed for only a slight rise in incoming new business levels whilst job shedding accelerated to a six-month high.
“Firms reported a further lack of pressure on capacity throughout the private sector yet this was not enough to halt the current upturn in the Scottish economy.”
Last week, oil and gas operator EnQuest said it would axe 45 roles, including directly employed staff and contractors, in Aberdeen.
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