The overall picture for Q2 remains positive, with 0.6% growth, compared to Q1’s 0.5%. The largest contribution to headline GDP in was electricity & gas supply, which contributed 0.3 percentage points to headline GDP. The largest contribution to the contraction was manufacturing at -0.2 percentage points.

Kevin Brown, savings specialist at Scottish Friendly, commented: “It is concerning that the Scottish economy is lagging behind the UK’s in these latest figures. However, any such faltering could be short-lived as rate setters begin to look at lowering the base rate in order to ease conditions for the economy.

“Despite this lag, with interest rates finally heading in the other direction, and inflation back at normal levels, it could be that Scottish households begin to start feeling better off for the first time since the cost-of-living crisis really took hold.

“While that is certainly a good thing, households need to think carefully about how they might weather any future storms. There is some way to go yet and the path is unlikely to be a smooth one, so building greater financial resilience to protect against future shocks is sensible.”

Deputy First Minister Kate Forbes said: “Overall these figures paint a picture of a growing and resilient economy.

“The Scottish Government has made economic growth a clear priority and I am pleased to see consistent overall growth over the past six months despite harsh economic climates.

“We are investing more than £5 billion in 2024-25 to drive the economy and further initiatives will be detailed in the forthcoming Programme for Government and our Green Industrial Strategy.

“Figures for the second quarter follow the trend seen across the UK and I am optimistic about Scotland’s medium and long term economic prospects, despite the restrictions of the devolution settlement and the continuing challenges posed by Brexit. We look forward to working with the UK Government to address these challenges.

“A strong economy is fundamental to achieving the Scottish Government’s priorities of eradicating child poverty, growing the economy, tackling climate change and improving public services.”