JOB cuts in the manufacturing sector have hit their highest levels for more than a year.

According to the latest figures from the Chartered Institute of Purchasing and Supply (CIPS), the fortunes of UK manufacturers showed no signs of improvement as job cuts in particular hit their most severe rate since December 2001.

February's overall Purchasing Managers Index (PMI) figure was 48.6, 0.1 points lower than January, and means the sector last grew - when the figure was above 50 - in November last year.

One of the biggest factors in the poor showing was the employment index, which recorded a figure of 43.4 in February, compared to 45.9 in January.

Steve Rankin, regional director for the CBI, said: "Investment by manufacturers is at its lowest level for ten years.

"However, despite the poor showing by the region in this PMI survey, confidence in the North-East is not as low as in other regions of the UK.

"The region's manufacturers are currently looking ahead to when the global economy recovers, but at the moment they, like others across the UK, are having to tighten their belts, and unfortunately this is leading to job cuts in the sector."

And that sentiment was echoed by the North-East Chamber of Commerce.

Membership director Jeanette Roddy said: "Orders and investment - and consequently confidence - are at a very low ebb and the sector is in need of support."