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Scottish manufacturing loses momentum Print E-mail
Tuesday, 23 October 2007

The latest Scottish Industrial Trends Survey published today by CBI Scotland shows a slowing of momentum within the manufacturing sector.

Manufacturers suffered a stagnation in total orders, as well as falling output and domestic prices over the three months to October.

This slowdown in demand had been expected by manufacturers, and conditions in the sector look set to remain relatively downbeat next quarter.

Iain McMillan, Director of CBI Scotland, commented: "Scottish industry has performed well over the past few years, however the data from the latest quarter clearly shows some of that recent sparkle has worn off.

"While expectations for the next quarter are muted, there is good reason to hope this might prove temporary, with businesses telling us their twelve-month forecast for investment intentions in respect of innovation and training remain firm, and with plans for capital investment set to perk up. This ought to enhance their productivity and competitiveness and make firms better placed to respond to any future growth in orders.

“This quarter’s results are a reminder that the continued health of the sector cannot be taken for granted. Ultimately the success of manufacturers will continue to depend on their own products, talents and ability to respond to customer demand, and the support on offer from Scottish Enterprise’s Manufacturing Advisory Service is welcome recognition of this.

"However there are a number of factors influencing the success of Scottish manufacturing, and we will continue to lobby policy makers to keep a firm lid on those costs under their control and influence that affect business, particularly taxes, charges and regulation."
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