Manufacturers cut plans for investment

SCOTTISH manufacturers are scaling back investment as confidence has sunk to a three-year low amid domestic and foreign pressures.

CBI Scotland claimed in its latest quarterly industrial trends survey that falling confidence, concerns over economic conditions abroad and doubts about future demand was causing firms to cut plans to invest in machinery, buildings, training and innovation.

The organisation said it was the first time in three years that a majority of manufacturers had said they intended to reduce spending across all four investment indicators.

Iain McMillan, director of CBI Scotland, said the latest survey was “disappointing”.

He said: “A weak economy and worries over the eurozone are affecting business confidence, and this is leading firms into shrinking their investment plans. A resolution to the eurozone crisis will be essential.”