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Industry pessimistic for immediate future

Small and medium-sized manufacturers are shedding staff at the fastest rate since the early 1990s, as demand for UK-made goods continues to fall rapidly in the deepening recession.

According to the CBI’s latest quarterly SME Trends survey, the three months to January saw rapid falls in employment, orders, and output. Firms are now expecting the next quarter to be even tougher.

Sarah Green, Regional Director for CBI North East, said: “The jobs picture among smaller manufacturers has deteriorated markedly since last July in the face of rapidly declining demand for UK-made goods at home and abroad.

“Firms are steeling themselves for a very difficult few months with output and orders expected to fall at a record pace in the next quarter. As a result, job losses are expected to accelerate among SMEs.

Optimism about the business situation fell at its sharpest rate since the survey began in October 1987 (a balance of -71%, compared to -57% in October).

Sarah Green said: “This survey closed before the Government’s measures to kick-start lending across the economy were announced and we hope these will soon begin to make it easier for firms struggling to access the credit they need to go about their day-to-day business. Only the availability of credit will help stem the tide of job losses.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .