Scottish manufacturers to scale back investment

Amid domestic and foreign pressures, Scottish manufacturers are cutting plans to invest in machinery, buildings, training and innovation.

This is the first time in three years that a majority of manufacturers intend on reducing spend across all four investment indicators, CBI Scotland says.

The survey results come across a gloomy economic background. Yesterday, official data showed that, in the last three months of 2011, the UK economy contracted 0.2 per cent, with most of the damage done by a 1.2 per cent fall in industrial output.

The survey is “disappointing”, Iain McMillan, director of CBI Scotland says. 

“A week economy and worries over the eurozone, our biggest export market, are affecting business confidence and this is leading firms into shrinking their investment plans.

“A clear and orderly resolution to the eurozone crisis will be essential to prevent further effects on both domestic manufacturing and the wider economy, and to lift business confidence.”

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