Scotland's economy returns to modest growth

Scottish Gross Domestic Product increased by 0.1% in the first three months of this year following a dip in the last quarter of 2010.

The economy grew by 1.3% over the year to March this year.

The largest contribution to growth between January and March was a 0.3% increase in the services sector which includes distribution, hotels, catering and transport.

Production output grew by 0.9% overall, which includes engineering, textiles and clothing.

But construction output fell by 3.6%, following a decline of 1.1% in the last quarter of 2010.

Finance Secretary John Swinney said: "While there was a further fallback in the construction sector in the aftermath of the severe winter weather, it follows previous quarters of strong growth, with construction output up significantly over the year and by more than across the UK.

"In terms of employment, workforce construction jobs increased by 11.6% in the year to March, compared to a 0.2% fall in the UK as a whole.

"However, Scotland's recovery needs to be strengthened, and the GDP figures underline the urgent need for an economic Plan B, or flexibility, from the UK Government."

Mr Swinney said that plan should focus on extra capital investment, improved access to finance and employment security.