Scotland's economy is set to strengthen in the early months of 2008 as a result of an improving labour market, one commentator has suggested.

Home buyers interested in purchasing property in Scotland's central belt may be interested to read of the positive forecasts made by the Bank of Scotland for the area's economy in the coming year.

According to the latest data from the bank, activity in the economy is predicted to "pick up" in 2008 with long-term average growth of 2.2 per cent for the first three months of the year.

The bank's Index of Leading Economic Indicators states: "Consumer sentiment has improved in recent months and, coupled with a strong business sector, this suggests growth of the Scottish economy should accelerate in early 2008.

"A strong labour market should also underpin economic growth into 2008."

The bank suggested that a slower economic performance this year was attributable to a series of interest rate rises and consequent low consumer confidence.

Elsewhere in the report it was indicated that most sectors of the Scottish housing market remain robust, with prices increasing by 22 per cent during the year ending March 2007, although new housing starts fell by 12.5 per cent.

Earlier this month the Bank of Scotland suggested that the labour market in Scotland was following an upward trajectory, with permanent staff placements increasing at their fastest pace for 12 months.