The Confederation of British Industry has reported on its latest 'Quarterly Industrial Trends Survey', which gives a good idea of the state of the UK economy.
Scottish manufacturer's confidence about the general business situation fell over the past three months, down 5% on the index. While there was a deeper fall in optimism about export prospects which had a sharp decline of 29%.
New manufacturing orders fell in the 3 month period, most of that was down to much fewer export orders.
Further falls in new orders are expected over the coming three months, and output is also expected to decline.
Hugh Aitken, CBI Scotland Director, said:
''Manufacturers have been struggling with export demand for several months, because of subdued global growth and the strong pound. Alongside that pressure Scottish manufacturers have also been facing ease in domestic demand.
With drop in new orders expected, optimism among Scottish manufacturers has continued to fall and turnaround will depend on the trajectory of Sterling and the evolution of domestic and global demand conditions.
Over the longer term, boosting our performance in exports, innovation and skills training is vital to enhancing our manufacturing growth and improving productivity. It’s crucial that both the UK and Scottish governments act decisively to protect spending in these areas as part of the upcoming Comprehensive Spending Review and the Scottish Government’s Budget.''
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