Record slump in manufacturing demand
Apr 24 2009
The demand for UK manufactured goods has fallen at its fastest rate in 30 years over the past quarter, new figures show.
According to the Confederation of British Industry's (CBI's) latest Industrial Trends survey, 60 per cent of manufacturers have seen a fall in the volume of orders in the last three months, compared to 13 per cent which reported a rise.
The resulting balance of -47 per cent is the lowest the poll has seen since October 1980, when it fell to -60 per cent.
However, the survey also reveals that business sentiment in the manufacturing sector fell at a slower rate than has been seen in the previous seven quarters, while companies say they expect the pace of decline to moderate in the next three months.
Ian McCafferty, chief economic adviser at the CBI, comments: 'The first quarter of 2009 was extremely tough for UK manufacturers but this survey shows firms hope that the worst may be behind them, with the pace of decline slowing slightly.'
Manufacturing group EEF claims that this week's Budget has alleviated some of the short-term pressures facing the industry, although was disappointed by a lack of support for short-term working and increased costs of redundancy.
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