Manufacturing in worst position for 17 years

The UK manufacturing sector is experiencing its worst slump for the last 17 years, according to a recent report by the Confederation of British Industry (CBI).

In its Industrial Trends Survey, it was found that 56 per cent of respondents reported a fall in the number of new orders they received.

Chief economic adviser at the CBI Ian McCafferty said that as elsewhere in the world, the UK was not immune to the effects of the current economic climate.

He said this owed mainly to the lack of demand for products in the last three months, with sentiments towards the next three months carrying on this trend.

Mr McCafferty continued: "Most firms expect conditions to get even worse, with further falls in orders expected, leading to more job cuts. Companies unsurprisingly plan to cut back investment sharply over the next year."

Despite this, both CNC machine tool specialist Hurco Companies and Mills CNC have reported an improvement in demand, with the latter rebranding its company name from Mills Manufacturing Limited.