Scotland’s economy ended the first quarter of the year strongly, a Bank of Scotland survey among businesses through the country found.
Improved conditions led companies to increase staff, the bank said in its latest monthly purchasing managers index (PMI) report.
Chief economist Donald MacRae added: “The March PMI signalled further strong growth of business activity across both manufacturing and service sectors.
“Not only did the level of new orders increase but employment rose for the 16th month in a row, while cost pressures eased.
“New export orders fell for the second consecutive month, illustrating the challenge of improving our trade performance.”
Both sides of the Scottish independence debate took encouragement from the figures.
Finance Secretary John Swinney said: “Following the January and February PMI, which both reported growth in output, the March reading suggests that the first quarter of 2014 ended on a positive note.
“With the full fiscal and economic powers of independence, the Scottish Government could do so much more to strengthen our economy and create more jobs.”
Ivan McKee, a director of pro-independence group Business for Scotland, added: “This is great news and demonstrates the continuing strength of Scotland’s economy.”
Scottish Secretary Alistair Carmichael said the PMI report provided “very encouraging signs” of economic recovery becoming more embedded. Mr Carmichael added: “It is good to see employment rising for 16 straight months, manufacturing orders increasing and cost inflation falling to a 54-month low.
“It is also promising to see job creation in the manufacturing sector increase to an all-time survey high. It is clear that this (UK) government’s measures to back Scottish businesses are working.”