Scottish engineering firms have reported an increase in orders, although exporters are yet to see the benefit of the weaker pound, a report suggests.
Trade body Scottish Engineering's latest quarterly review of the sector found there was an improvement in optimism and across some specialist areas, where trading improved and “even some capital investment” was made.
Small and large companies “have turned the corner into a positive situation” on orders, the report states, though orders for medium companies “remain negative”.
Output volume and staffing rose for the first time since December 2014.
The forecast for the next three months on staffing “remains positive”.
Bryan Buchan, chief executive of Scottish Engineering, said:
“We are not yet seeing the benefit of the weak pound following its post EU Referendum fall in value. However, that is for the future and our industry needs more orders in the short and medium term.”
Added Kenneth Gibson:
“We should be cautiously optimistic. Scotland is world renowned for our engineering expertise and despite Brexit looming the engineering workforce and output are growing.
“In the months ahead both the SNP Government and UK Tory Government need to support our engineering businesses to weather these uncertain times. More infrastructure projects is an obvious way to do that; it’s what the sector wants and is vital for the prosperity of North Ayrshire and Scotland.”