This modest rise follows a 0.2% growth in July and compensates for the 0.1% dip experienced in June. The service sector, which accounts for around three quarters of the economy, saw a 0.5% increase after a previous decline. However, this was offset by a 1.1% decrease in production output, with manufacturing experiencing a significant 2.3% drop.

The GDP statistics, which remained stagnant over the three months to August, signify a levelling out in the third quarter of 2023, an improvement from the 0.3% contraction seen in the second quarter.

Wellbeing Economy Secretary Neil Gray commented: “These figures demonstrate the resilience of the Scottish economy against the extremely challenging circumstances faced by countries around the world.

“But, as highlighted by our Consumer Sentiment Index, the cost-of-living crisis continues to impact household and businesses’ ability to spend, which in turn affects the wider economy.

“And Scottish businesses also continue to suffer due to the effect Brexit has had on supply chains, trade and the free movement of people, which has in turn had a significant impact on businesses in terms of staffing.”

He continued: “I am not content with minimal growth levels for Scotland as part of the UK when our European neighbours have recently had much stronger growth than us.

“When analysis shows they - as similarly sized independent nations - have fairer, more productive and faster growing economies, we have to ask why not Scotland? That is the level of ambition this government has for Scotland.

“By focusing on the principles of equality, opportunity and community, an independent Scotland can build a fair, green and growing economy.”

Mr Gray concluded: “Ultimately, this crisis has been worsened by the UK Government’s handling of the economy. We are doing everything possible with the powers currently available to us to support businesses.

“That is why our New Deal for Business Group to reset the relationship between government and industry is focusing on co-designing policies that will have a positive impact on the day-to-day operations of business.”