The CBI estimates that 29,000 UK manufacturing jobs will have
been lost between July and September this year.
According to the CBI’s The Regional Trends Survey, 36
per cent of manufacturing employers are negative about employment prospects, compared
to nine per cent that are positive.
The survey’s findings show that business confidence is at
its lowest since January 1999.
Plant and machinery investment intentions among employers
for the next twelve months are negative in all regions except Wales.
“This survey suggests that last week’s rate cut was clearly
justified. The global slowdown is now hitting UK manufacturing hard with firms
in virtually all UK regions experiencing falling orders, output and employment,
with severe pressure on profit margins. With underlying inflation set to remain
within the Government’s 2.5 per cent target, further interest rate reductions
may be necessary if consumer demand comes off the boil and service sector
growth eases further,” said Sudhir Junankar, the CBI’s associate director of
Economic Analysis.
The CBI polled over 1,000 manufacturing employers.
By Paul Nelson
