Private sector employment in Scotland fell for the second month in a row in September, according to the latest data from the Bank of Scotland.

The index posted a reading of 49.6, up from 49.4 in August, though figures under 50 represent contraction.

Meanwhile, the seasonally adjusted Bank of Scotland Purchasing Managers Index (PMI) fell from 52.7 in August to 51.9 – its lowest reading for nine months.

Chief economist Donald MacRae says: “Private sector activity in the Scottish economy increased for the ninth month running in September. However, the month-on-month growth was the slowest since the start of the year.

“Both jobs and new orders fell in the month but new export orders saw a modest increase. Manufacturers increased output at a solid rate despite strong cost pressures. This month’s PMI suggests the Scottish economy continues to grow but is slowing in common with the rest of Europe.”