Scottish companies have reported a sharp acceleration in growth of overall business and predict a further acceleration during the current quarter, according to the latest Royal Bank of Scotland Business Monitor conducted by the Fraser of Allander Institute.

The survey of more than 400 Scottish businesses revealed that more than 40% of firms experienced rising turnover in the three months to September.

Fewer than a quarter reported that turnover fell.

However, the survey also highlights a further decline in capital investment.

Overall, the latest Scottish Business Monitor – for Q3 2018 – highlights an improving picture with an uplift in optimism.

In particular, the latest results for new and repeat business continue to grow.

Graeme Roy, director of the Fraser of Allander Institute said: “This survey is further evidence that Scottish businesses remain resilient against a backdrop of heightened uncertainty.

“After a challenging couple of years, the Scottish economy has returned to sustained – but fragile – growth.

“Over the first six months of 2018, growth in Scotland was faster than for the UK as a whole. Securing a smooth Brexit transition is therefore crucial to maintaining these hard-fought gains …

“The Scottish Business Monitor provides a timely update on the state of the Scottish economy and the environment that businesses are operating in.

“With ongoing uncertainty, it is vital that business prepare for the future and continue to focus upon the elements of future profitability and success that they can control such as investing in innovation, workplace innovation, training and development and product development.”