Manufacturers
in almost every region are beginning to climb out of recession, according to a
CBI and Business Strategies survey, however further job losses are still
expected in the South West.
The
latest quarterly Regional Trends Survey, shows there is a widespread feeling
among regional manufacturers that they have turned the corner and put the worst
of the recession behind them.
But
the South West remains pessimistic – especially regarding employment prospects.
Estimates of employment based on the survey show that 38,000 further job cuts
are expected in the UK in the second quarter of this year. The South West will
experience the largest decline in percentage terms.
The
CBI said although problems remain, positive output expectations are boosting
optimism:
"The
picture for the next four months is brighter than it has been for over a
year," the report said.
"Most
regions expect output to increase, led by the North East and the North West, an
encouraging turnaround in the two regions that have seen the sharpest falls in
the past 15 months. Only in the South West is output expected to continue to
decline significantly in the next four months."
CBI
Head of Economic Analysis Doug Godden, said: "This is encouraging news for
manufacturing. The upturn in optimism, and expectations for increased demand
and production are widely spread around the UK. However, the recovery will be
from a low base, with most regions having continued to contract in the past few
months. Prices and profits remain under pressure and investment intentions are
generally weak."
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