According to the latest figures released, the Scottish economy has begun to recover from the economic slowdown but the pace remained below that of the UK as a whole.

Bank of Scotland's influential purchasing managers' index (PMI) was recorded at a high of 58.3 during the previous month compared to 56.7 recorded during July. A rating of above 50 indicates expansion and that of below 50 shows contraction. The survey officials said that the improved market confidence was the key factor behind faster growth in Scotland.

Bank of Scotland chief economist Donald MacRae said that the pace of growth in the country is rising but indicated that it was rising quickly. However, the rate of growth remained lower than that for the entire UK. The services industry led the recovery with most recording the highest month-on-month increase in business activity since May 2007. Scottish manufacturers too recorded the most rise in new export orders since May 2012. The data also showed that the employment rose for the ninth month and rose by its highest level since June 2007. Only West Midlands recorded a higher increase during the month.

Mr MacRae said, "August's PMI showed the economic recovery continuing in Scotland. The latest month's results set two records for the survey, showing a sharp increase in business activity and new work accompanied by a strong rise in employment. Particularly welcome is the rise in new export orders to the highest level since May of last year."