Most
regions saw new manufacturing orders fall markedly in recent months, with manufacturers in large parts of the country reporting a further drop in overall confidence - according to the latest Regional Trends Survey published yesterday by the
CBIand Experian.
At the
The quarterly survey shows that three regions in particular -
The survey shows that these regions were hardest hit by the fall in total orders for the second survey in a row, and this is reflected in a steep fall in output in the past six months.
Engineering, a major manufacturing component in the West Midlands, and textiles and chemicals which are of great significance in the North West, have all fared particularly badly in these three regions in recent months.
Outside these hard-hit regions, output trends have been less gloomy. Declines in the last few months have been quite small and in the case of
On a number of other key indicators,
Investment intentions for buildings are positive, in contrast to deep pessimism in other parts of the
While employment contraction at the
An estimated 22,000 jobs are expected to be lost to manufacturing at a national level in the current quarter (April - June), as set out in the CBI's recent Industrial Trends Survey.
This is a large figure but still well short of the losses seen during the steep manufacturing recession of 2001 to 2003. Experian estimates based on the survey results show that the South East & London is set to bear the largest fall in absolute terms (9,000 job losses) as well as percentage terms (1.4 per cent), followed by the East Midlands (4,000 jobs) and East of England (3,000 jobs).
Peter Gutmann of Experian said: "The fall in business confidence among manufacturing firms highlights a number of adverse features that outweigh continuing strength in the global economy.
Doug Godden, CBI Head of Economic Analysis, said: "The gloomy national picture for manufacturing demand - confirmed in official figures released earlier this week - masks some quite significant regional differences, with a more positive picture in
"It is clear that cost increases remain a pertinent issue for manufacturers nearly everywhere. We hope that the re-elected Government will reinvigorate its efforts to reduce red tape, and demonstrate that there is no agenda to push up business taxes further."
The results of the CBI/Experian Regional Trends were taken from the 676 replies to the CBI's Quarterly Industrial Trends Survey received between 23 March and
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