Scottish engineers report pick-up in business

Business has picked up for Scotland's engineering firms for the first time in two years, according to an industry survey.

Scottish Engineering's quarterly review suggested an improvement in orders, output and staffing in the final quarter of this year.

The latest review follows seven quarters of negative results.

The industry body said the improvement could be seen as "coming from a fairly low base".

The previous review suggested order books and output volumes were at their lowest level since 2009.

The industry body said at the time that uncertainty surrounding the Brexit vote was one factor "exacerbating negative trading conditions".

Scottish Engineering chief executive Bryan Buchan said the results of the latest review were "significant".

'Positive signs'

He said: "We were at a low post-Brexit on the last quarterly review.

"We seem to have adopted a 'bunny in the headlights' stance as the shock hit our sector, but I think what we are seeing now is the feedthrough from the benefit that is being seen from the weak pound in the rest of the UK as they draw on the Scottish supply chain to replenish stocks which have been depleted.

"Everything is not rosy in the garden yet, but all around our district meetings in the last six weeks we have been hearing some positive stories that people are seeing an uptake in demand for products from their business.

"They are seeing some positive signs coming through for the future."

He added: "What may provide a benefit to the Scottish engineering manufacturing sector is the decision by the chancellor in his Autumn Statement to increase spending on infrastructure and productivity.

"However, that is for the future and our industry needs more orders in the short and medium term."