Scotland's economy is benefiting from fresh business orders and confidence is high, according to a report.

The Bank of Scotland has reported an expansion of manufacturing output and service sector activity in April, for the third successive month.

It revealed that manufacturing order book growth was at its highest level for 17 months and business confidence higher than in the last quarter of last year.

Continued growth in the service sector was reflected in the 39th successive month of employment growth.

The survey concluded that the increase in activity was driven by further growth of demand from both the corporate and consumer sectors.

Overseas demand

Bank of Scotland group economist Martin Ellis said: "Consolidation of the recent return to more balanced growth in the Scottish economy is evident from the April survey.

"Activity levels in the service sector remain buoyant, and the strengthening in manufacturing order books indicates that demand at both home and abroad is now increasing.

"The continued growth in service sector employment in April, meanwhile, together with the marked slowdown seen recently in the rate of manufacturing job losses is also to be welcomed and suggests that the outlook for employment in Scotland remains favourable."

UK manufacturing output slightly exceeded that recorded in Scotland.

But UK manufacturers continued to shed labour at a faster rates than their Scottish counterparts in March.