PMI: Scottish firms raise prices at record rate

Scottish firms passed on rising costs to customers at a record rate last month, according to a new survey.

The Royal Bank of Scotland's purchasing managers' index (PMI) found businesses faced "unprecedented inflationary pressures" in February, with surging energy, fuel, material and staff costs.

However, Scotland still recorded the slowest rate of cost inflation across the 12 monitored UK areas.

Meanwhile, business activity rose at its strongest pace for three months.

Firms reported a strengthening of demand as Covid-19 restrictions were scaled back.

Manufacturing production rebounded, while Scottish service providers registered a faster upturn in activity.

The survey's Business Activity Index - a measure of combined manufacturing and service sector output - rose to 55.5 in February, up from 53.7 in January.

Any figure above 50 suggests expansion.

Business confidence at Scottish companies also continued to improve in February.

The survey suggested optimism was driven by hopes of a strong rebound following the easing of restrictions.

The rate of increase in new business accelerated to a three-month high and was sharp overall.

Meanwhile, Scottish private sector firms recorded a further increase in staffing levels.

Respondents reported taking on additional workers as a result of strong sales.

The rate of job creation was the sharpest for three months and amongst the quickest on record.

However, Scotland recorded a much slower increase in workforce numbers than the UK-wide average.