05/09/2005

Manufacturing jobs situation ‘has worsened’

The prospect of employment in the UK’s manufacturing industry has worsened, according to a new industry report.

The survey by the Engineering Employers Federation (EEF) found that there were job cuts in most areas of the sector in the three months to August.

The motor industry was the worst affected, the EEF reported, partly due to the collapse of car firm MG Rover.

However, the EEF said that there were signs of a potential pick-up in orders and output and said that the sector was proving to be resilient, despite rising costs, including an increase in fuel prices and an economic slowdown.

EEF Chief Economist Steve Radley said: “Conditions remain tough for manufacturing, but the picture is considerably better than official data suggests.

“Companies are continuing to show resilience, despite the effects of massive cost pressures and the current soft patch in the economy.”

The EEF said that companies remained optimistic about the next three months and that it had predicted growth for the second half of the year.

(KMcA/SP)

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