Engineering Employers’ Federation (EEF) says deteriorating political and
economic conditions are to blame for the drop in its growth forecasts.
forecasts for the first quarter of 2003 predict that engineering will contract
by 0.7 per cent this year, while manufacturing will grow by just 0.4 per cent.
numbers represent a slide from the predictions of just three months ago, when
it was expected the sectors would expand by 1.1 and 1.2 per cent respectively.
the figures are the worst for 12 months and fall significantly short of the
treasury’s most recent prediction of 2 per cent growth.
EEF is calling for a cut in interest rates and is urging the chancellor not to
impose any additional costs on industry.