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A strong performance by services firms lifted Scottish private sector output in March to its highest level for nine months, according to a report.

With Scotland's businesses shaking off CV19 restrictions, a sharp upturn in hospitality and other services offset a slight contraction in manufacturing output, which fell for the third time in four months.

The RBS survey of purchasing managers also indicated continued growth in workforces across the private sector.

It suggested activity was supported in part by the ongoing pandemic recovery.

However, supply bottlenecks, material scarcity and rising energy and fuel prices contributed to record increases in both input costs and output prices.

Survey respondents also cited the effects of Russia's invasion of Ukraine.

The Royal Bank of Scotland Business Activity Index posted 58.4 in March, rising from February's 55.5. Any figure above 50 suggests expansion.

RBS Scotland board chairman Malcolm Buchanan said the March data revealed a continued improvement across the Scottish private sector.

He said: "Despite strong growth overall, supply-side issues and substantial inflationary pressures persisted, with the impact most noticeable across the manufacturing sector.

"However, services firms saw a record surge in costs in March amid soaring energy and fuel prices, which firms continued to pass on to clients. "

He added: "Given the current state of play with regards to inflation, the downside risks to the demand side of the economy have intensified.

"But it was encouraging to see strong business sentiment, with firms optimistic for growth opportunities if the Covid-19 recovery continues."

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