Scottish economic bulletin: May 2025

Output

Economic output strengthened at the start of 2025.

• Economic growth in Scotland fell by 0.2% in February however more broadly grew by 0.7% in the three months to February, with the pace of growth rising from 0.6% in January and from the lower rates seen in the second half of last year.^[1]
• Growth also strengthened at a UK level, rising to 0.7% over the first quarter of 2025 from 0.1% in the final quarter of 2024.

• Growth in the three months to February was broad based with output growing in Services (0.1%), Construction (0.1%) and, particularly, Production (3.4%). Production growth was in part driven by growth in Manufacturing (1.2%) and in Electricity and Gas Supply (14.3%), which in turn was due to an increase in gas-generated power in an unseasonably still February.
• Within the services sector, consumer facing services grew 0.5%, strengthening from growth of 0.2% in the three months to January. This partly reflects growth in Wholesale, Retail and Motor Trades (1.8%), offsetting a fall of 0.8% in Accommodation and Food Services.