Despite consecutive economic contractions in January and February, a late burst of momentum saw monthly GDP surge by 0.6% in March.

In the three months to March, the sector with the largest contribution to GDP was retail, wholesale and motor trades, which contributed around 0.2 percentage points of growth.

Kevin Brown, savings expert at Scottish Friendly, said: “Scotland’s economy ended the first quarter of the year with a burst of momentum. Yet the bigger picture is still one of sluggish growth.

“A 0.6% rise in GDP for March is encouraging after two consecutive monthly contractions, although it was not enough to stop Scotland falling well behind the UK over the quarter.

“Scottish GDP grew by just 0.1% in Q1, compared with 0.6% across the UK. Services and construction grew by 0.2% and 0.4% respectively, but a 0.5% contraction in production dragged on growth.”

Mr Brown continued: “Strength in March despite a quarterly slump may reflect activity being brought forward by businesses and consumers anticipating higher costs, particularly after rising energy prices revived concerns about inflation.

“That leaves UK households facing an uncertain backdrop. When growth is only inching forward, pay rises, job security and consumer confidence can all come under pressure. 

“For households, the priority therefore remains financial resilience. That means reviewing savings rates, mortgage deals, energy tariffs and everyday spending, so personal finances are in the strongest possible shape while the economic outlook remains uncertain.”

Economy Secretary Stephen Flynn said: “It is encouraging to see Scotland’s GDP showing growth of 0.6% in March, after overall growth of 1.4% last year.

“While this demonstrates the resilience and strength of Scotland’s economic foundations, this news comes on a day in which energy bills will rise by 13% a year in July. Another price rise will hit families across Scotland hard – and it is particularly stark given the UK Government’s broken promise to reduce energy bills by £300.”

He added: “Delivering increased economic growth in Scotland is at the very heart of the Scottish Government’s agenda.

“This is why I will prioritise engagement with the business community to fully understand the environment it operates in, how we can help to ease pressures and maximise opportunities – such as that of net zero industries which a CBI report today highlights as supporting more than 105,000 jobs and bringing £10 billion to Scotland’s economy.”