| CATEGORY: NEWS AND ANNOUNCEMENTS |
UK manufacturing could see 140,000 job cuts |
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Mon 02 Mar 2009
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LONDON (SHARECAST) - UK manufacturing sector could see 140,000 job cuts in the year because of the economic downturn, the Engineering Employers Federation (EEF) said on Monday.
The engineering and manufacturing body, which surveyed 782 firms, forecast that manufacturing output would fall by 8.6% in 2009 and grow only 0.2% in 2009. Engineering output is set to shrink by 10.9% this year and rise by 0.9% next year.
The news comes as a report form the Chartered Institute of Purchasing and Supply and Markit Economics showed UK manufacturing contracted for a tenth month in February. An index, which is based on a survey of about 700 factories, fell to 34.7 from 35.8 in January.
The EEF said production and orders had hit record lows in the first two months of 2009.
“Few firms expect things to get better in the near future but they are also focusing on making sure they are ready to take advantage of the eventual recovery," said chief economist Steve Radley,
According to the EEF, 39% more companies expect to cut output than to raise it in the next few months and 54% more said that orders had dropped.
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