Thousands more factorybased job cuts were forecast yesterday after an industry body said firms had stepped up cost reduction initiatives.
The CBI said that job losses in the manufacturing sector would average 25,500 for each quarter of 2005, up from 22,000 last year, and showing an increased rate over the next three months as the slowdown in consumer spending continued.
The quarterly industrial trends survey from the CBI pointed to a "continuing downward trend in employment" with expectations also falling.
The gloom over jobs came as the report found that orders and output for manufacturers fell faster than had been expected over the past three months.
Profit margins were tighter as costs increased in line with higher energy prices and more firms cut prices than raised them.
John Cridland, CBI deputy director general, said: "Manufacturers had another disappointing quarter in what has been a very difficult year.
"Domestic orders have continued to decline, reflecting the tough conditions prevailing on the high street. Equally disappointing has been the renewed fall in overseas orders.
"Against this background firms are cutting back on their investment plans and expect the rate of job losses to increase."
