‘36,000 manufacturing jobs to go’
The Confederation of British Industry (CBI) is warning that up to 36,000 jobs could be lost over the next three months in the manufacturing sector, despite a rise in optimism.
The latest survey of manufacturing confidence revealed that optimism by the UK’s manufacturers rose in almost half of the country’s regions.
The CBI and Experian Business Strategies’ Regional Trends Survey found that optimism was still generally low but rose in five of the UK’s 11 regions. In the previous survey manufacturers’ confidence fell in all but two regions, which were only just positive.
Manufacturers in Wales, Yorkshire and the Humber, the South West and the North West all report that export prospects over the next year were improving. The majority of regions reported that total orders are expected to rise over the coming year.
Doug Godden, CBI Head of Economic Analysis, commented: ‘Three months ago manufacturers were gloomy in almost every region. There has been an encouraging turnaround in some of the regions though severe difficulties remain and there are some sharp contrasts in outlook.’
According to the survey, every region, apart from Wales and Northern Ireland, saw orders fall over the last quarter and orders are expected to continue to fall in the West Midlands, Scotland, South East and London and East of England.
Despite the improvement in optimism and prospects 31,000 jobs have been cut in the manufacturing sector over the last three months, with London and the South East experiencing the sharpest declines. The survey suggests that, across the UK, a further 36,000 jobs will go by the end of the year.
Peter Gutmann, Associate Director of Experian Business Strategies, added: ‘For the first time in well over a year, a majority of regions expects exports to improve. This is consistent with widespread agreement that global recovery is under way. The only doubt concerns the strength of the revival in the eurozone. Subdued growth prospects in this important market for UK exporters probably explains the persistent caution in some regions.’
The survey was carried out on 836 manufacturing businesses across the UK between 18 September and 8 October 2003.
