Covid in Scotland: Rate of economic growth slowed in August

Output in the services and construction sectors are estimated to have risen by more than 3%, but output in the production sector fell

Economic growth in Scotland slowed in August compared to the previous month, according to the latest estimates.

Scottish Government data shows Gross Domestic Product (GDP) rose by 2.6% in August, compared to 6.4% in July.

It means GDP remained 9.4% below what it was in February, before the onset of the coronavirus pandemic.

The August figures represent the fourth consecutive month of economic growth, but the increase was more uneven across industrial sectors than previously.

Output in the services sector is estimated to have increased by 3.3% compared to July, output in the production sector fell by 0.3%, while construction sector output increased by 3.8%.

The figures come on the same day as Scottish retailers warned there is "no recovery in sight" after reporting a sharp fall in high street sales.

• 'No recovery in sight' for Scottish retailers

• UK inflation rises after Eat Out to Help Out ends

• Scottish GDP slumped by a fifth after lockdown

• Scotland's retail sales stagnated in August

Scotland's Economy Secretary Fiona Hyslop insisted the government is "taking every possible step" to protect jobs and help rebuild the economy.

"While it is good news that Scotland's GDP grew again in August, our economy remains fragile and recovery will take time," she said.

Ms Hyslop warned of further hardship ahead with the looming threat of a no-deal Brexit at the end of the transition period.

Scottish Secretary Alister Jack said: "The UK government is doing everything possible to keep people safe and protect the Scottish economy from the shock of the pandemic."