The latest quarterly review from Scottish Engineeering showed an improvement in orders, output and staffing in the final quarter of 2016, after seven quarters of negative results.

Scottish Engineeering’s CEO Bryan Buchan said: “We are not yet seeing the benefit of the weak pound due to the simple fact that, excluding oil and gas, the UK accounts for £48 billion of Scotland’s total exports, compared to £11.6 billion to the EU and £15.2 billion to the rest of the world.

“What may provide a benefit to the Scottish manufacturing engineering 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.”

Scottish Engineeering added: “The review figures show that if order intake for the last three months — 39% up, 26% same, 35% down — is compared with the industry’s forecast for the next quarter — 22% up, 60% same, 18% down — there is a similar positive four-point result.

“This is also reflected in output figures as the last quarter shows — 33% up, 45% same, 22% down — compared with an improving forecast for the next quarter — 36%up, 42%same, 22%down.

“Staffing levels show that the number of employees — 22% up, 65% same, 13% down — has increased quite substantially more than the overtime levels — 29% up, 44% same, 27% down.”