SCOTTISH manufacturers suffered a sharp acceleration in the pace of decline of new orders and output volumes in the three months to April, a survey has revealed.
They also cut employment levels at a faster pace, according to the survey published yesterday by the Confederation of British Industry.
Subtracting the proportion achieving a rise from that experiencing a drop, a net 48 percent of Scottish manufacturers reported a fall in total new orders for the three months to April. This marks a significant deterioration from the balance of 21 per cent recording a decline in total new orders during the preceding three months.
A net 56 per cent of Scottish manufacturers experienced a fall in new export orders in the latest three months. And a balance of 31 per cent reported a drop in new orders from within the UK.
Meanwhile, a balance of 35 per cent of Scottish manufacturers reported a fall in output volumes for the three months to April. In the preceding three months, a net 19 per cent of Scottish manufacturers had experienced a drop in output volumes.
A decline in employment was reported in the latest survey by a balance of 12 per cent of Scottish manufacturers. In the previous three months, a net seven per cent of respondents had reduced their workforces.
However, a balance of 13 per cent of Scottish manufacturers forecast a rise in total new orders in the next three months.
Hugh Aitken CBI Scotland director, said: “Conditions appear to be getting tougher for Scotland’s manufacturers. While expectations for orders growth in the upcoming quarter are more encouraging, manufacturers are still facing sizeable external headwinds.”
However, Mr Aitken paid tribute to the innovative efforts of manufacturers north of the Border, against a difficult global economic backdrop.
He added: “Scottish manufacturers are ahead of the curve when it comes to innovation to stay competitive in a global economy. That’s why it’s important the next Scottish Government helps to maintain a pro-business environment for the prosperity of all.”
The UK manufacturing sector as a whole has been weak in recent times, with Chancellor George Osborne’s vision of “a Britain carried aloft by the march of the makers” having failed to materialise.
The CBI’s UK-wide survey of 472 manufacturers signals a modest decline in total new orders and flat output volumes in the three months to April.
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