Chemicals lead the way as exports surge 2.9% in fourth quarter

SCOTTISH manufacturers enjoyed an end-of-year boost thanks to healthy exports of chemicals, textiles and food.

Official figures yesterday showed an overall rise of 2.9 per cent in manufactured exports in the fourth quarter of 2009. It follows a 0.9 per cent increase in the previous three months, which had been the first upturn in exports for almost two years.

The biggest growth over Q4 was in chemicals, coke, refined petroleum and nuclear fuel – a category which rose by 9.4 per cent.

Exports of textiles, fur and leather jumped 7.7 per cent, metals were up 5.1 per cent and the engineering sector rose by 3 per cent. Food, drink and tobacco recorded a 1.2 per cent gain.

However, a weak start to 2009 meant that over the course of the year, total manufactured exports were down by 10.1 per cent. Not all sectors enjoyed gains in the fourth quarter either. Declines were observed in wood, paper, publishing and printing – down 7.9 per cent – and "other manufacturing", where there was a 0.3 per cent dip.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said the manufacturing sector had "demonstrated strong resilience to the recession".

She added: "The fact that exports grew throughout the second half of last year underlines the importance of increasing internationalisation among Scottish businesses.

"Our economy will benefit from more businesses, in manufacturing and other sectors, looking towards new markets and expanding their horizons globally."

CBI Scotland's assistant director, David Lonsdale, said: "Overseas demand is beginning to return and more needs be done to capitalise on the opportunity provided by the weak pound."

The latest figures suggest that the positive impact from the slide in sterling grew over the course of the year. But that failed to prevent some sectors racking up hefty annual falls. Metals dropped by 24.1 per cent while textiles, fur and leather were down 17.4 per cent.

Enterprise minister Jim Mather said: "Through our economic recovery plan, we are scaling up support for exports."

He stressed Scottish Development International was supporting global trading among firms, with the expansion of the Scottish Manufacturing Advisory Service increasing the number of companies that can access this help.