SCOTTISH manufactured exports in the first quarter of the year increased, despite the pressures of inflation and a faltering global economy, official figures have revealed.
New Scottish Government statistics yesterday showed that export sales of Scottish manufactured goods in the January-March period were up 2.3 per cent from the final quarter of 2007. For the full year to the end of March 2008, sales were up 3.2 p
er cent.
Quarterly figures were boosted by overseas trade in the mechanical engineering sector, whose sales rose 19.3 per cent on the previous quarter. The next biggest riser was electrical and instrument engineering, which takes in Scotland's electronics sector, where sales grew 6.6 per cent. Although sales in this sector have more than halved since its peak in 2000, electronics remains Scotland's largest exporting sector, accounting for 33 per cent of Scotland's total manufactured exports in 2007.
Over the year, engineering and allied industries increased exports by 5.6 per cent, contributing most to the year's overall growth.
Peter Hughes, chief executive of Scottish Engineering, said the figures were "encouraging", despite recent reports that the second quarter of the year was looking more challenging for manufacturers.
"The feedback I'm getting from our members is still optimistic and positive despite pressures. I'm encouraged by the figures," he said.
Engineering exports were boosted by the pound softening against the euro, making British exports on the continent more competitive.
"One of our biggest single export markets from Scotland is the eurozone," Hughes said.
According to Hughes, engineering firms have benefited from implementing more "lean" processes, insulating them from downturns affecting the US and European economies, and he predicted businesses would continue to perform well.
The worst hit sector was food and tobacco, where exports fell 14.8 per cent on the quarter, and 13 per cent over the year.
A spokesman for the Scottish Food and Drink Federation was "surprised" at the figures – they were in stark contrast to UK-wide food and drink exports, which rose in 2007 by 9.1 per cent.
Scottish wood, paper, publishing and print exports grew 2.2 per cent in the first quarter and textiles, fur and leather exports were up 3.4 per cent. The remaining industries showed declines in export sales.
Liz Cameron, chief executive of the Scottish Chambers of Commerce, welcomed the figures as a "much needed boost" to the economy following consecutive quarters of decline in exports.
"At a time when the economic news has tended towards gloom and pessimism, these figures underline the fact that many Scottish businesses are thriving and taking advantage of the market opportunities which do exist," Cameron said.
CBI Scotland director Iain McMillan said the rise had come after what appeared to be a "temporary dip in fortunes" in the final quarter of 2007.
The full article contains 475 words and appears in The Scotsman newspaper.
