The engineering sector may have to shed another 90,000 jobs this year as it
starts a long, slow climb from recession, latest industry figures show.
The Engineering Employers Federation’s (EEF) latest survey showed that
output and orders fell for the fifth successive quarter, although the pace of
decline had eased in the past three months.
However, any recovery will start from a low base as official figures show a
14. 2 per cent fall in engineering output and a 6.7 per cent fall in
manufacturing in the past 12 months – the largest annual drop in the sector
since 1981.
Stephen Radley, chief economist at the EEF, said the market remained
depressed and that job cuts would come on top of 70,000 losses last year.
He said: "There are some signs of improving confidence, but little
tangible evidence of actual growth while the lid on prices remains as tight as
ever."
The quarterly survey, which covered some 1,344 companies, found that the
electronics sector and traditional industries, including metal products and
mechanical engineering, were still in decline.
