A rise in Scottish manufacturing exports has not been enough to offset an overall fall in orders, “disappointing” new figures have revealed.
According to the CBI’s latest Scottish Industrial Trends Survey, new orders fell during the last three months, the fourth successive quarter orders of decline.
This has led to increased pessimism in the sector, although there is rising confidence about the potential for overseas sales.
Domestic orders are expected to continue sliding over the next three months. However, exports will rise.
The survey also found most companies expect output to rise and the number of people employed in the sector to rise accordingly.
Manufacturers reported average unit costs rose in the last quarter and are expected to keep rising over the next three months. Domestic and export prices are set to rise as a result.
Investment intentions for the year ahead are mixed, with improvements in forecasts for product innovation and for training, but with capital investments in buildings and plant and machinery expected to decline.
CBI Scotland director Iain McMillan said: “There is no getting away from the fact that these latest findings are disappointing, with the slight growth in exports more than outweighed by the continuing marked decline in new domestic orders.
“That said, the short-term outlook looks better, with firms expecting the decline in domestic orders to ease over the next few months, coupled with a strengthening in business won from overseas.”