Call for trade boost as Scottish exports dip

Scottish manufactured exports fell in the final three months of last year, adding to concerns that the sector may have peaked.

Figures from the Scottish Government showed the value of goods shipped abroad continued to fall in the fourth quarter although the rate of decline, at 0.3 per cent, was less severe than the 0.7 per cent Q3 drop. CBI Scotland called the figures "disappointing" and urged the next administration to prioritise policies that promote export and trade.

The muted reaction from the business body came despite a 1.6 per cent rise in manufactured exports for the whole of 2010.

Industrial output data for the whole of the UK showed an unexpected fall in February. Although much of the decline was put down to higher than normal maintenance disruption to oil production, manufacturing also stalled, research from the Office for National Statistics showed.

Economists said the data would narrow the odds on the Bank of England's monetary policy committee delaying an interest rate rise until at least the summer. It is believed the MPC, which announces its April rate decision today, will want to see a strong rebound in first quarter GDP before making a move.

Daiwa economist Hetal Mehta said the fact that manufacturing output was flat in February means any rate hike expectations for today, or even May, are "most likely dead in the water".

Scotland's fur and leather manufacturers saw the sharpest growth in Q4, expanding 6.2 per cent, while areas such as food, drink, tobacco, and "other manufacturing" also performed well.

This was tempered by a 3.9 per cent fall in chemicals, coke, refined petroleum and nuclear fuel manufacturing and declines in a number of other traditional industries such as engineering and allied industries, and metals and metal products.