The latest Regional Growth Tracker data from the Royal Bank of Scotland has pointed to a “solid rise” in Scottish private sector activity at the start of the second half of the year.

The rate of increase picked up from June, supported by a renewed expansion in the inflows of new work.

In line with rising business requirements, firms also raised their employment figures at a quicker pace.

The year ahead outlook was also optimistic.

Price pressures also intensified during July, as a sharper uptick in input costs fed through to higher charges.

“The headline Business Activity Index registered above the 50.0 no-change threshold for a seventh month running in July,” ssid the report.

“Ticking up to 52.7, from 51.9 in June, the latest reading signalled a solid start to the third quarter.

“However, the uptick in private sector activity was again centred at service firms. Meanwhile, goods producers recorded a further drop in output.”

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, said: “The Scottish private sector signalled a solid start to the second half of the year, backed up by a strongly performing service sector.

“Growth in the service sector was again able to mask the downturn at manufacturers, with service firms noting improving underlying demand trends.

“Moreover, optimism towards the year ahead outlook was firmly optimistic, as confidence levels strengthened on the month.

“Private sector employment also ticked up in July, the rate of job creation quickening from June. Meanwhile, inflationary pressures intensified during the latest survey period and could pose a concern to firms in the coming months.”