LONDON: Scottish manufactured export volumes dipped 0.4 per cent “in real terms” during the third quarter of 2015, new official figures show. The latest Index of Manufactured Exports for Scotland report, covering Q3 – July to September – of 2015, suggest the volume of manufactured exports returned to negative territory after three consecutive quarters of growth.
The figures, compiled by Scotland’s chief statistician, suggest the last time a quarter-on-quarter decline in manufactured export volumes was recorded was in Q3 of 2014. However, on a rolling basis – comparing the last four quarters against the previous four quarters – the volume of manufactured exports to overseas markets grew 2.4 per cent, the report suggests.
Sectors contributing to the quarterly growth contraction were Metals & Metal Products (-15.7 per cent, Non-Metallic Products (13.6 per cent) and Other Manufacturing & Repair (-13.6 per cent). Food & Drink exports grew 3.6 per cent in Q3, driven by a 17.3 per cent increase in food exports, though drink exports recorded no growth.
Annual rolling growth was up for Food & Drink (+2.6 per cent); Refined Petroleum, Chemical & Pharmaceutical Products (+10.8 percent); Textiles, Clothing & Leather (+1.8 per cent); Engineering & Allied Industries (+1.7 per cent); and Metals & Fabricated Metal Products (+4.6 per cent). However, sectors recoding an annual fall in the rolling rate were Wood, Paper & Printing (-4.7 per cent); Non-Metallic Products and Other Manufacturing & Repair (-1.8%).
Commenting on the figures, Deputy First Minister John Swinney said: “Today’s figures continue the recent trend of export growth, which is consistent with the wider picture that has materialised for the Scottish manufacturing sector from the recent Q3 2015 GDP figures and business surveys over this period.
“It is encouraging to see strong quarterly growth in Food, Beverages & Tobacco and Engineering & Allied Industries sectors, and export growth of 2.4 per cent during the year. “These statistics show however, that the Scottish economy, like that of the UK, is continuing to feel the effect of significant global headwinds that are being driven by muted global growth alongside the strong value of Sterling and current oil prices.
“Scotland is a hugely wealthy and productive country and our economy continues to flourish – as indicated by last week’s GDP figures – making it one of the best places for international trade and investment.
“The Scottish Government, through our enterprise agencies, is committed to strengthening and supporting Scotland’s economic links in overseas markets and will continue to invest in and promote exports to help build sustainable economic growth for Scotland.”
Andy Hall, Barclays’ head of corporate banking for Central Scotland, said: “Despite a strong start, Q3 saw a slowdown in export performance with manufacturers reporting a dip of 0.4 per cent in output as a result of lower demand.
“The slight fall in new export orders has been attributed to the impact of a strong pound as well as price discounting due to strong competition in the market. “Manufacturing slowed in the UK as a whole in Q4 after a challenging year but with these latest figures revealing year on year growth of 2.4 per cent the sector will be hoping that Scotland bucks the wider trend in the last few months of 2015.”
