Even there, the job losses have been in small numbers.

Speaking about Scottish Engineering's latest Quarterly Review, chief executive Peter Hughes said: "Our reading of the situation is that companies are desperately trying to hold on to their skilled workforces so that when the economic tide changes, they will be able to take full advantage. The last thing our member companies want is to be scrabbling about looking for staff when the orders start to pile up; as I am sure they will."

In terms of UK order intake, even electronics (19%up,31%same,50%down) remain fairly negative but the sector suffering most pain is machine shops (14%up,14%same,71%down). Forecasts for UK orders in the next three months, however show a significant upturn in both electronics (25%up,75%same,0%down) and oil & gas (50%up,33%same,17%down).

One of the most telling predictors is the levels of optimism and in general terms (11%up,37%same,52%down) these have improved marginally but are severely negative.

This feeling is reflected by Peter Hughes who said: "While there is a marginal improvement in overall order intake it is far from strong and the green shoots of recovery have yet to appear."

Output volumes in general (14%up,33%same,53%down) have dropped even further but this reflects the poor order intake figures that were reported in the previous quarter.

For further information contact Colin McGill on 0141 221 3181 or 07976 224412 or visit the Scottish Engineering website on www.scottishengineering.org.uk