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Economic decline rates 'easing' Economic decline rates 'easing'
(about 1 hour later)
Rates of economic decline have eased in Scotland but a recovery is still out of sight, according to a monthly survey of the private sector.Rates of economic decline have eased in Scotland but a recovery is still out of sight, according to a monthly survey of the private sector.
The RBS poll of more than 600 firms suggested that March had seen an easing in the rate of decline in new orders.The RBS poll of more than 600 firms suggested that March had seen an easing in the rate of decline in new orders.
The survey also noted that fewer jobs were being shed and cost inflation at its weakest rate since 2002. The survey also noted that fewer jobs were being shed and cost inflation was now at its weakest rate since 2002.
It said: "The survey remains close to historic lows and pace of decline is still firmly in recession territory." But RBS said the data remained close to historic lows and the pace of decline was still in recession territory.
The survey of firms in the service and manufacturing sectors also suggested that the amount of outstanding work businesses had in the pipeline had continued to shrink, but at its weakest rate since November.The survey of firms in the service and manufacturing sectors also suggested that the amount of outstanding work businesses had in the pipeline had continued to shrink, but at its weakest rate since November.
Although the data showed a drop in employment in March, the rate of job shedding in Scotland was the slowest since October and the weakest of any UK region.
'Tentative step''Tentative step'
However, the bank said the collapse in demand was "not getting worse".
David Fenton, RBS's head of macroeconomics, said: "I think this is just a tentative step in the right direction.David Fenton, RBS's head of macroeconomics, said: "I think this is just a tentative step in the right direction.
"Before things start getting better, they're going to have to stop getting worse.""Before things start getting better, they're going to have to stop getting worse."
Meanwhile, another study has suggested that Glasgow has been among the UK cities hardest hit by job losses over the past year. Meanwhile, another study suggested Glasgow was among the UK cities hardest hit by job losses over the past year.
Research by The Work Foundation said the number of people out of work and claiming Jobseekers' Allowance (JSA) in the city had risen by 5,873 in the past year.Research by The Work Foundation said the number of people out of work and claiming Jobseekers' Allowance (JSA) in the city had risen by 5,873 in the past year.
The study said a total of 20,276 people in the area were claiming JSA in February this year.The study said a total of 20,276 people in the area were claiming JSA in February this year.
People in Scotland know all too well that the recession is hitting cities outside London hard Jeremy PurvisLib DemsPeople in Scotland know all too well that the recession is hitting cities outside London hard Jeremy PurvisLib Dems
However, figures showing the number of JSA claimants for other Scottish cities suggested that the percentage increase was higher in other Scottish cities, such as Edinburgh and Aberdeen. However, official figures showing the number of JSA claimants suggested that the percentage increase was higher in other Scottish cities.
There were 3,295 more claimants in Edinburgh - a 59.5% rise compared to February 2008 - which brings the total to 8,830.
Aberdeen saw a 50.5% rise in a year, to 2,535 claimants.
Dundee had a 41.8% rise in the number of people claiming JSA, a figure which now stands at 4,610.
Labour's economy spokesman John Park said he was "deeply concerned that the recession was hitting Scotland harder because of the SNP's economic incompetence".Labour's economy spokesman John Park said he was "deeply concerned that the recession was hitting Scotland harder because of the SNP's economic incompetence".
The Labour MSP said The Work Foundation report highlighted the need for "a much clearer strategy from ministers to promote manufacturing". The Labour MSP said the Work Foundation report highlighted the need for "a much clearer strategy from ministers to promote manufacturing".
And he urged First Minister Alex Salmond to "change course and show that he is willing to work with the UK Government to promote growth".And he urged First Minister Alex Salmond to "change course and show that he is willing to work with the UK Government to promote growth".
'Feeling the pinch'
A spokesman for Finance Secretary John Swinney hit back at Labour and said: "This is a truly absurd attack which completely flies in the face of the facts - John Park should know that the latest unemployment figures show that Scotland is faring much, much better than other parts of the UK when it comes to jobs.A spokesman for Finance Secretary John Swinney hit back at Labour and said: "This is a truly absurd attack which completely flies in the face of the facts - John Park should know that the latest unemployment figures show that Scotland is faring much, much better than other parts of the UK when it comes to jobs.
"That is because the SNP Government's economic recovery plan is having a real impact in helping households and businesses through the recession, and has been more effective than Labour's plans for tackling their own Downing Street downturn.""That is because the SNP Government's economic recovery plan is having a real impact in helping households and businesses through the recession, and has been more effective than Labour's plans for tackling their own Downing Street downturn."
Liberal Democrat finance spokesman Jeremy Purvis said: "People in Scotland know all too well that the recession is hitting cities outside London hard.Liberal Democrat finance spokesman Jeremy Purvis said: "People in Scotland know all too well that the recession is hitting cities outside London hard.
"Edinburgh's financial sector has been hit hard by RBS's dismal profit and cost-cutting regime and we are expecting sweeping job losses across the country from the hasty takeover of HBOS."Edinburgh's financial sector has been hit hard by RBS's dismal profit and cost-cutting regime and we are expecting sweeping job losses across the country from the hasty takeover of HBOS.
"But it's not just big cities that are feeling the pinch. My own area in the Scottish Borders has seen many job losses, particularly in the textiles sector, which is real rural manufacturing industry.""But it's not just big cities that are feeling the pinch. My own area in the Scottish Borders has seen many job losses, particularly in the textiles sector, which is real rural manufacturing industry."