This is according to the latest Bank of Scotland PMI. Reflecting this, the headline Bank of Scotland PMI - a seasonally adjusted index monitoring activity across Scotland's manufacturing and service sectors - fell from 53.1 to 52.9.
Highlighting the weakening trend, new order and employment growth both decelerated since May. The divergence in the performance between Scotland's service providers and goods producers also widened sharply during June.
Activity in the Scottish private sector economy continued to expand during June. This extended the current period of growth to one year. Despite manufacturers recording a series-record rise in output, a near-stagnation of service sector activity led to an overall slowing in the pace of expansion. Where a rise was recorded, new order growth was often commented on.
In turn, higher activity levels at clients led to a mild rise in new order volumes during June. Although weaker than recorded in May and that seen at the UK-wide level, the latest rise was the eleventh in the past twelve months.
Donald MacRae, chief economist at Bank of Scotland, said: "The recovery in the Scottish economy slowed in June. However, overall growth was achieved by a best-ever rise in manufacturing output augmenting only marginal growth in the service sector. While the pace of input cost inflation faced by businesses moderated, average costs again inflated at a much stronger pace than the UK. Recovery in the Scottish economy is underway albeit at a slower rate than the UK as a whole."
