Manufacturing optimism falls

Optimism among Scottish manufacturers took a turn for the worse in a “sobering” quarter for the sector, according to new data from the Confederation of British Industry (CBI).

The organisation’s latest Scottish industrial trends survey found that business optimism fell at the fastest pace since July 2016 while confidence regarding export prospects also deteriorated.

The CBI said changes in business sentiment were largely reflected in activity, with both domestic orders and export orders falling in the quarter. And although export orders are forecast to return to growth in the coming three months, domestic orders are set to keep falling.

Additionally, output was broadly unchanged over the past three months and looks set to stay flat moving into the next period. Employment growth slowed over the past quarter, with hiring intentions for the three months to January the weakest for two years.

Tracy Black, CBI Scotland director, said continued Brexit uncertainty is “unsettling” Scottish manufacturers, adding: “Weaker employment growth paired with a deterioration in investment intentions also points to a situation where firms are wary of committing to growing and investing in the current climate – something we desperately need to address Scotland’s productivity challenge.”

And a separate report published today by the Federation of Master Builders (FMB) found that most parts of the UK saw growth among construction small and mediumsized enterprises (SMES) slow in the third quarter.

It found that 86 per cent of builders reported increasing material prices, while more than two-thirds of construction SMES struggled to hire bricklayers.

FMB boss Brian Berry warned that restricting immigration could see the “alreadysevere” skills crisis see infrastructure projects stalling.