Professor Graeme Roy, Director of the Fraser of Allander Institute, added: “Scottish businesses are remaining resilient in the face of challenging trading conditions.

“Inflationary pressures are an increasing concern but the fall in the value of sterling is providing a welcome boost for Scotland’s tourism sector and exporters.”

Economy Secretary Keith Brown described the report as “good news for the Scottish economy”.

He said: “The latest RBS business monitor prepared by Fraser of Allander contains good news for the Scottish economy.

“Companies across the country have reported modest growth in the three months to February, with the financial and business services and tourism sectors enjoying above average growth. Most companies also enjoyed increases in turnover and new orders.

“Businesses are optimistic that the trend will continue, with many expecting export activity to also rise over the rest of 2017.

“These encouraging economic signs mean it is more important than ever that we avoid an extreme Brexit, which threatens jobs, investment and living standards – and the Scottish Government will continue to do all we can to retain our place in the world’s biggest single market.”