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Scotland's private sector made "a positive start" to the fourth quarter, with output growth accelerating to a three-month high, a survey has found.

The Bank of Scotland's latest PMI report suggested faster expansion in both manufacturing and services.

Employment across the private sector increased in October, in line with higher output.

However, firms continued to face rising input costs, leading to a "modest" increase in output charges.

Fraser Sime, regional director of Bank of Scotland Commercial Banking, said: "The upturn (in October) was broad-based, with both manufacturing and service output expanding at quicker paces.

"Latest data also pointed to an overall expansion in new business orders although growth was only evident in the service sector.

"Manufacturers received slightly fewer new business orders albeit higher output allowed backlogs of work to clear."

He added: "Input costs continued to remain in sharp inflationary territory amid reports of higher raw material prices and wage bills.

"Nonetheless, higher labour costs did not deter businesses from taking on more staff. The rate of job creation quickened to a modest pace."