CBI forecasts major job cuts in manufacturing sector
Employers representative the Confederation of British Industry (CBI) will warn today more jobs could go in the UK’s blighted manufacturing industry as business confidence and future orders remain depressed.
The CBI in its latest regional survey, in conjunction with Experian Business Strategies, renewed its call on the Bank of England’s Monetary Policy Committee to reduce interest rates on Thursday.
Doug Godden, the CBI’s head of economic analysis said: ‘Waning domestic demand and economic uncertainty have dented confidence everywhere. The Bank of England must give the economy a boost with a rate cut.’
Some analysts forecast the MPC will cut rates 25 basis points to 3.5% in an effort to reinvigorate Britain’s sluggish economy.
Disturbingly for manufacturing, which accounts for 20% of the UK economy, the CBI said no region reported increased orders over the previous four months.
With little cheer on the horizon, the CBI projected 86,000 jobs could be axed in H1 if current trends hold.
Regions particularly vulnerable to the manufacturing downturn include the south east of England, which had the fastest job rate cut.
The north west, the west, east midlands and east of England are all braced for falling orders and job losses in the coming months.
The regional survey drew on 937 responses to the CBI’s quarterly industrial trends report, during March 20 and April 9.
