Scottish manufacturers have taken advantage of rising prices and costs around the world to rebuild sluggish profit margins according to new figures released by the Confederation of British Industry (CBI) Scotland.

The latest quarterly manufacturing figures show that domestic prices grew at the strongest rate in two years, which manufacturers were able to pass on to customers, and in turn benefit their own profit margins. But the CBI warned that while exports and export prices remain strong, demand is set to flatten over coming quarters.

Iain McMillan, CBI Scotland director, said:

“The survey shows that Scottish manufacturers are continuing to perform well. They have been able to pass on price rises to customers and have taken the opportunity to rebuild profit margins, which have for several years been squeezed by rising costs.

“Whilst firms’ expectations for the immediate future are more muted, it is encouraging that businesses are planning to step up their investment in training and innovation over the next twelve months. This should enhance their productivity and competitiveness and, coupled with their predicted rise in recruitment, see firms better placed to respond positively to any future uptick in order books.”

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