Manufacturers warn of job cutbacks
Employers expect to cut jobs in the manufacturing industry in the next three months, according to the CBI.
Its latest industrial-trends survey showed a net balance of 10% of industrial firms say they will have to cut employment — fuelling fears the encouraging rate of growth of job creation in the private sector may not be sustained, just as serious public-sector cuts begin.
In response, a senior Bank of England policymaker hinted he may vote for further direct injections of money into the economy.
Manufacturers reported they were less optimistic than three months ago, with a net balance of minus 16%, the first fall in sentiment since July 2009.
The CBI survey comes after second-quarter growth figures showed the economy flatlining, with growth of only 0.2%. Manufacturing output fell between April and June, by 0.3%.