This follows a revised 0% growth (up from -0.3%) in June, contributing to a 0.3% increase in GDP for the three months leading to July. The manufacturing and information & communications sectors were the main drivers of this growth.

This indicates a slight decrease in growth relative to the increase of 0.6% in 2024 Quarter 2 (April to June).

Kevin Brown, savings specialist at Scottish Friendly, said “that one of the chief explanations offered was increased spending thanks to major sporting events, including the Euros and the Olympics”, adding that “it means the Scottish economy is weathering the challenging fiscal environment” and a continued drop in interest rates “could provide a further boost to households and businesses alike”.

However, uncertainties remain, particularly surrounding the upcoming UK Budget.

He continued: “The UK government’s new Budget is looming in October, but some of its potential effects could be diluted thanks to the Scottish Government’s devolved control of some taxation matters. This includes income tax bands and rates, stamp duty and council tax – all of which have been subject to speculation ahead of the Budget on 30 October.

“Despite these positive factors, the message for households in Scotland is still clear: there is a lot of uncertainty ahead and it would be wise to use any disposable income to shore up personal financial resilience.

“Rainy day funds are the key to this. However, for individuals looking at the longer term, investing could provide greater potential for growth over the longer term.”

Deputy First Minister Kate Forbes said: “These figures show that Scotland’s economy is recovering steadily, having grown over the last two quarters. It is particularly encouraging to see that manufacturing and information and communications services expanded in July.

“We are stepping up action to drive economic growth. Our Programme for Government and Green Industrial Strategy set out measures to support start-ups, reduce barriers to investment and work in partnership with businesses.”