CONFIDENCE among manufacturers has fallen at its sharpest rate since January 1999, leading to fears of further job cuts, a survey has revealed.
The quarterly regional survey from the Confederation of British Industry (CBI) and Business Strategies blamed the deterioration on the effects of the global slowdown and the "continuing squeeze" on manufacturers' margins.
It estimated that, based on the results of the survey for the first three months of the year, a further 17,000 manufacturing jobs would be shed in the second quarter. But it said the scale of the decline across Britain could be overstated, as it might also reflect the foot-and-mouth crisis and the slowdown in the US economy.
CBI associate director Sudhir Junankar said: "For the first time since the UK economy slowed down during 1999, firms consider uncertainty about demand to be the key constraint on their investment plans."
He predicted a quarter point cut in interest rates this week
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