A major business survey has pointed to continued weakness in North East Scotland but concluded the slowdown in the Scottish economy is coming to an end.
The latest RBS Scotland Business Monitor found companies across the country expected to see a rise in business volumes, sales and repeat orders during the coming six months.
The survey was conducted for RBS by the Fraser of Allander Institute (FoAi).
Publication of the results of the research comes just days after the think tank produced its own study that suggested Scotland came within a whisker of recession in 2015 and may fall to that fate in the months ahead.
The new RBS study was based on responses from 500 Scottish firms.
It found business activity was broadly flat in the quarter to May, while growth for the second half of the year was likely to be modest.
The researchers found the recovery was taking root in the Central Belt but in other regions, especially in the north east, overall performance and prospects were weaker.
Finance and business services showed good trends but exports were a concern.
Malcolm Buchanan, chairman of RBS’s Scottish Board, said: “The feedback suggests positive, if modest, confidence levels are returning to the Scottish business community, something we hear regularly from our customers. But we cannot be complacent.
“The disparity between sectors and even regions shows we must do everything we can to help businesses succeed.”
FoAI’s professor Graeme Roy said: “Overall the performance of the Scottish economy since 2015 has been relatively fragile, although this report confirms that growth is likely to return.”