Export orders rose for Scottish manufacturers in the three months to January, but domestic demand dipped.
Manufacturing output fell for the first time in a year, according to the latest CBI Quarterly Industrial Trends Survey.
Average unit costs were flat and average domestic prices fell to the greatest extent in more than five years, both likely due to lower oil prices.
Export orders are expected to continue growing in the next three months, but expectations for domestic orders growth are low.
The firms reported orders or sales to be the main factor likely to limit output in the next three months.
Employment in manufacturing fell slightly in the three months and is expected to rise in the next quarter. Plans for investment in the next year weakened.
Hugh Aitken of CBI Scotland said: “The rise in export orders is positive for Scottish manufacturers, but the broader picture looks weaker.
“The Scottish Government should support firms looking to break into new markets by improving access to export finance, and ensure that Scotland is well connected with strong transport links.”
Falling oil prices contain cost pressures for Scottish manufacturers and the lower price of oil should be positive for the UK economy overall, although North Sea oil producers are being hit and need more help.”