Scottish recruitment consultancies recorded a further rise in staff placements in August, though the latest increase in permanent appointments was the slowest in four months, according to the latest Bank of Scotland Report on Jobs.

A slowdown in permanent salary inflation meanwhile contrasted with a pick-up in temporary wage growth. Candidate availability worsened, but the rate of decline was the slowest since May 2013.

Donald MacRae, chief economist at Bank of Scotland, commented: “These results suggest the Scottish economy continues to grow but at a lower rate than this time last year.”

The headline Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single-figure snapshot of labour market conditions – dipped to 56.2 in August, its lowest since May 2013.

The barometer was well above the 50.0 ‘no-change’ mark, but was substantially lower than the corresponding UK index which ticked up to a three-month high of 61.7.

In contrast with slowing growth in the permanent market, consultancies recorded the fastest rise in billings received from temporary/contract staff since September 2014.

On the pay front, August marked the eighth successive month that permanent salary growth in Scotland was below the UK average, with the gap widening as growth slowed to its weakest rate in two years.