Business confidence north of the border continues to strengthen, new research suggests.

According to the results of a quarterly study by Lloyds TSB, over 50 per cent of Scotland's business sector reported a turnover increase for a three month period up to November 2006.

Indeed, the report has highlighted a growing sense of confidence within Scotland's service sector.

"[The] Scottish economy continues to grow above its trend rate," said Donald MacRae, chief economist at Lloyds TSB.

"Expectations for future growth remain high." He added.

Out of the total number of businesses surveyed, 28 per cent reported a static turnover during the period examined, with 19 per cent reporting a decrease.

Over the course of 2007, the Scottish economy will grow at a rate of around 2.25 per cent, according to the banking group.

Lloyds TSB Scotland operates through 187 branches and has established a foundation to support the development of the Scottish community.