Scotland’s private sector grew last month, with output reaching the highest level since February, according to the Bank of Scotland’s regional purchasing managers’ index (PMI) for May.

Businesses put the growth down to expansion in the services sector and manufacturing production remaining strong. The PMI for Scotland stood at 51.5 last month, up from March’s four-month low of 50.1. It was 50.6 in April.

The index, which produces a single-figure measure of the month-on-month change in combined manufacturing and services output, indicates a rise in business confidence for the next 12 months. The firms surveyed in the report attributed confidence to “an unexpected economic upturn”.

Fraser Sime, of the Bank of Scotland, said: “The latest PMI data signalled the Scottish private sector moving up a gear, as growth reached a three-month high. The positive news was driven by rises in combined output and new orders, fuelled by solid underlying demand.

“Also, easing price pressures added to the overall improvement in business conditions. That said, Scottish private-sector growth remains below that of the UK as a whole.”

Economy Secretary Keith Brown said: “The latest Bank of Scotland PMI figures show a welcome rebound in Scottish service-sector business activity in May, while manufacturing output remains strong and continues to improve.

“These figures show that the Scottish economy remains resilient, and we will continue to do all we can to support growth.”