There is expected to be moderate private sector growth over the remainder of the year, according to the latest Business Monitor report from the Edinburgh-based bank.

In the three months ending August 2015, 36 per cent of 414 firms surveyed saw increased turnover, 36 per cent experienced static turnover, and 28 per cent experienced a decrease - a net balance of 8 per cent, up from the 7 per cent of the previous quarter.

However, it is down from the 30 per cent of the same quarter one year ago.

The overall net balance of turnover for firms in the production sector in the three months to end August 2015 was 3 per cent.

This is an improvement on the -2 per cent of the previous quarter but still down on the 35 per cent of the same quarter one year ago.

Export activity fell over the period by -9 per cent, but the fall was less serious than the -24 per cent of the previous quarter.

Expectations for turnover in the next six months ending February 2016 are showing an overall net balance of 15 per cent.

This is the eleventh successive Business Monitor report showing a positive net balance for turnover expectations.

The figures suggest Scotland’s private sector will show growth close to but below trend level in the third quarter of 2015.

Donald MacRae, chief economist at Bank of Scotland, said: “The Scottish economy slowed at the start of 2015 but is expected to return to moderate growth in summer and autumn.

“Expectations remain positive and suggest that current growth rates will be maintained in the third quarter of the year.”