'Fragile' manufacturing sector to lose another 100,000 jobs

Published on Friday 14 April 2006 01:14

BRITAIN'S manufacturing sector is showing signs of recovery - but the upturn remains fragile, said the British Chambers of Commerce.

"There have been improvements, but confidence is not great," said BCC director-general David Frost, in its latest quarterly survey, adding that he expected 100,000 jobs to be lost in the sector this year. Looking wider afield, he said any UK recovery must be backed by moves to support employment and boost exports and that the rise in unemployment announced this week, with the jobless figure now up to 1.56 million, still concerned the BCC.

The survey found manufacturing recorded increases in its quarterly balances for home sales and orders, export sales and orders, employment expectations, and plant and machinery investment.

But Frost said the sector had "persistently failed to sustain a recovery" and recent signs of an upturn in manufacturing were "tentative".