Scottish manufacturers hit at home and abroad

By DOMINIC JEFF
Published on 24/10/2012 21:16

THE weak economy has taken its toll on Scottish manufacturing firms in recent months, with official figures showing a decline in exports and a key survey revealing a sharp slowdown in domestic orders.

Official figures published yesterday showed that Scottish manufactured export sales fell by 4 per cent in the three months to June, although they were up slightly on an annual basis. CBI Scotland’s industrial trends survey for October revealed that the UK economy was also dragging on manufacturers, with a balance of 37 per cent of firms reporting a fall in new domestic orders.

It was the sixth successive quarter of decline, with the survey of 35 firms showing expectations are subdued for the coming three months.

CBI Scotland director Iain McMillan said the “dramatic” decrease in total new and domestic orders was worrying. He said: “These disappointing results show that manufacturing in Scotland faces a challenge from both the weak outlook for economic growth in the UK and continued uncertainty in the eurozone and internationally.”

Figures for the UK as a whole were not quite as bad, with a balance of 3 per cent of firms reporting that output fell, compared to those saying it rose. It was the worst reading since October 2009.