Scottish economy shrinks in September

<p>The Scottish economy contracted in September, according to fresh Bank of Scotland data.</p>

The Scottish economy contracted in September as the country grappled with the eurozone deceleration and wider economic downturn.

This is according to a report from the Bank of Scotland's latest purchasing managers' index (PMI), which revealed private sector output has slipped for the first time in nearly two years.

Scotland's manufacturing and services industry output decreased last month, while new business placed within the private sector dropped for the third month in a row – but the rate of decline eased since August and was only marginal, the bank stated.

A Scottish government spokesperson commented: "With our enterprise agencies, we are doing all we can with the tools we currently have to maintain Scotland's position as the most supportive environment for business in the UK."

At 10:00 BST, the pound faltered in forex trading, slipping 0.3 per cent versus the dollar to £1 buying $1.608, while it advanced against the euro to £1 for every €1.240.

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