Optimism on the wane as export dip is forecast
SCOTTISH business optimism has fallen and export growth is expected to be weaker over the next three months, according to a survey.
Although export orders and the volume of industrial output increased between April and June, optimism about the economy among respondents is negative, the Scottish Industrial Trends Survey by the Confederation of British Industry (CBI) said.
Export orders rose significantly over the past three months, but growth will be weaker in the next quarter, the survey predicts. Economic conditions in some overseas markets are also still a concern.
The growth of new orders fell slightly over the past quarter and domestic orders were down again, for the fifth successive quarter. Expectations for the coming three months are said to be subdued.
Manufacturing firms report that average unit costs largely stayed the same in the recent period but they expect them to fall significantly over the next quarter.
Firms expect domestic prices to fall but export prices to rise.
Investment intentions are mixed. More spending is expected on “product and process innovation” and training and retraining of workers, but investment in buildings, plant and machinery should fall.
CBI Scotland director Iain McMillan said: “These results are disappointing.”
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