JOB cuts in manufacturing firms accelerated in recent months as the sector came close to recession, a new survey revealed today.
The recent decline in the value of the pound has arrived just in time to prevent manufacturing industry falling back into recession, according to the Engineering Employers' Federation.
Its latest survey of 6,000 firms, including East Lancashire firms, showed that after three successive quarters of improvement, conditions deteriorated "significantly" in the three months to June.
The crisis in the motor industry coupled with the high value of the pound combined to speed up cutbacks in jobs and investment, said the federation.
Orders in the UK and abroad fell "considerably" for the first time in a year while the number of jobs lost in the past 12 months reached 25,000.
The federation's chief economist, Stephen Radley, said: "While we are hoping that the decline in sterling has at last brought some relief to exporters, manufacturing remains in a very fragile position.
"Future investment both by British companies and by inward investors depends on the pound stabilising at a lower level.
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