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Manufacturing staff are being slashed as the recession bites
SMALL AND medium-sized manufacturers are cutting staff for the first time in 18 months, says a quarterly Confederation of British Industry (CBI) SME Trends survey, with monthly figures suggesting the outlook for the manufacturing sector is the bleakest for 30 years.
The CBI says that while 17% of SME manufacturers had expanded their workforce in the past three months, 29% had reduced the numbers they employed. Some 27% firms say they will reduce their headcounts further next quarter.
In the CBI Trends Survey for October, more than half say orders are reduced, with 44% reflecting weaker export levels. Many have high inventory levels, while the figures suggest output will be at its lowest since 1980.
CBI says the outlook has "deteriorated since October".