Concern as Scottish exports flatline after steady growth

Scottish manufacturing returned to growth in the last quarter but exports flatlined after more than a year of sustained growth.

The latest CBI Industrial Trends Survey for Scotland found a 10% rise in output north of the border in the three months to July.

The firms surveyed said they expected that improvement to be broadly sustained in the coming months, although political and economic factors were cited as the reason for a more pessimistic outlook for exporters.

Tracy Black, CBI Scotland director, said: “Manufacturing remains a vital sector for the Scottish economy and it’s discouraging to see such pessimism among firms as we move into the second half of the year.

“While it’s great to see that overall output rose on the previous quarter, the survey paints a particularly gloomy picture for exporters.

“While exporting has been a strength in previous surveys, with just 70 companies accounting for half of all exports, we’re all too aware that Scotland simply isn’t capitalising on its vast exporting potential.

“With Scotland’s economy already stuttering we need firms to have the confidence to grow and invest here.”

In contrast, the chairman of the CBI Manufacturing Council said the UK sector had seen a significant improvement since a slowdown earlier in the year.

Tom Crotty, who is also group director of pharma giant Ineos, said the UK wide survey data showed an improved manufacturing picture, although he was cautious about future prospects.

“It’s great to see the manufacturing sector firing on all cylinders, with production revving up again after the slowdown earlier this year,” Mr Crotty said.

“But rising trade tensions and ongoing uncertainty over our future trade and customs arrangements are clearly taking their toll on manufacturers’ confidence and investment.”