Economy: Manufacturing set to take hit
18,000 manufacturing jobs to go in next 3 months
Tuesday, 06 May 2008 08:41
Some 18,000 British manufacturing jobs will be lost in the second quarter of this year.
The largest job cuts in absolute terms (5,000) are expected in the south-east and London, according to the latest Regional Trends Survey from the CBI and Experian.
Manufacturers' confidence is down over the last three months, particularly in the south, the survey found.
In six regions total new orders fell, notably in the south-west and south-east, while in Wales orders surged to record the strongest gain since 1995.
Exports improved across the majority of regions on a weaker pound, with Welsh firms reporting the most positive growth in export orders since the survey began.
Expectations for output are generally gloomy - particularly in the south
of the country. The south-west, south-east and London and the east of England all expect marked falls in output in the next three months.
Manufacturers across all of the regions experienced sharp rises in unit
costs - driven by more expensive energy and raw materials - and in many
cases these were the steepest since the early 1990s, the survey found.
In an attempt to counter the impact on their profit margins, firms in
most regions said they had raised prices.
Peter Gutmann of Experian said: "The survey suggests that the pound's 14 per cent depreciation against the euro over the past year is helping to support manufacturing exports, at a time when eurozone growth is faltering.
"This is the one bright spot in a fairly downbeat picture. Without this boost, manufacturers would be facing even tougher conditions in the coming months."
Sarah Routledge