Cutbacks in employment and
investment in the engineering are occurring despite continued growth in the
sector, according to the Engineering Employers’ Federation’s quarterly survey.
The survey, which
covers 1,400 companies, shows that the overall growth figure for engineering in
2001 is down to 3.2 per cent from 3.5 per cent in the previous forecast, due to
the impact of the slowdown in the US economy.
But growth in the
sector is still set to outpace the rest of the economy this year. EEF chief
economist Stephen Radley said, "Output and orders have generally held up
well and companies are reasonably optimistic."
Growth prospects are
improving in basic metals, mechanical equipment and transport, but motor
vehicle output continues to struggle.