MANUFACTURING firms have stopped cutting jobs and have seen the biggest upturn in orders for more than seven years, a new report has revealed.

Output and orders in the second quarter of the year grew at the fastest pace since 1996, according to research for the Engineering Employers Federation. A survey of 1,500 firms, conducted in May, found that companies planned to increase investment for the first time in six years.

EEF chief economist Stephen Radley said: "Manufacturers are now delivering the long forecast upturn in the first quarter and are looking to expand further in the second half of this year.

"However, the rising price of oil and commodities will make it harder to rebuild margins and could also eat into growth."

All sectors of manufacturing reported growth in the last three months, with more "buoyant conditions" found across all regions of the UK, while the North West in particular benefited from the upturn in mechanical equipment.

This view contrasts sharply with that of manufacturing union Amicus, which recently held a march and rally in Manchester attended by more than 1,000 manufacturing workers, to protest at job losses and lack of investment in the industry.

Kevin Coyne, Amicus NW general secretary, said: "More than 36,000 manufacturing jobs were lost between 1997 and 2000 in the North-west.

"This year, the total job losses for the region stands at 2,929, with 2,251 in April alone," Mr Coyne added.

Manufacturing was forecast to grow by 0.9% this year and 2.7% in 2005, and engineering by 1.8% and 4.4%, but the EEF said growth could be stronger.

"It is now essential that companies take advantage of these vastly better conditions to make up the cutbacks in investment of the last few years to improve their performance," added Mr Radley.

MANUFACTURING firms have stopped cutting jobs and have seen the biggest upturn in orders for more than seven years, a new report has revealed.

Output and orders in the second quarter of the year grew at the fastest pace since 1996, according to research for the Engineering Employers Federation.

A survey of 1,500 firms, conducted in May, found that companies planned to increase investment for the first time in six years.

This view contrasts sharply with that of manufacturing union Amicus, which last week held a march and rally in Manchester attended by more than 1,000 manufacturing workers, to protest at job losses and lack of investment in the industry.

Kevin Coyne, Amicus NW general secretary, said: "More than 36,000 manufacturing jobs were lost between 1997 and 2000 in the North-west. This year, the total job losses for the region stands at 2,929, with 2,251 in April alone."