Investment in buildings, plant and machinery is expected to fall in the next quarter as Scottish businesses' expectations droop.

The Scottish Industrial Trends Survey is the latest in a string of bad news for the construction industry here.

After the UK economy dropped into a confirmed double-dip recession and construction shrank by 5.2%, indications are that the road may not straighten out immediately.

Scottish respondents to the survey, run by the Confederation of British Industry, had subdued expectations for the next three months.


Although export orders rose over the past quarter, as did industrial output, businesses who took part in the survey showed a lack of optimism about the immediate future

They said growth would be weak in the next three months and domestic prices would fall.

But there was some good news – employment figures in industry rose by 13% between April and June, and respondents expected to spend more money in the next quarter on training workers and on 'product and process innovation'.

CBI Scotland director Iain McMillan said: "Scottish industry needs to fight hard for every sale and companies need to ensure that they are internationally competitive going forward. But there is much that government can do too. Both the UK and Scottish governments need to invest for the future and ensure that their spending is targeted in a way that will help to rebuild our economy.

"Investment in infrastructure, international connectivity and support to industry, particularly in relation to exports, is key."

(NE)