CBI adds cautious backing to recovery: '30,000 manufacturing jobs to go by summer'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.GUARDED support for the government view that economic recovery is under way came from the Confederation of British Industry yesterday. But the CBI warned that manufacturers were still cutting investment and were set to shed 30,000 jobs in the next three months.
Its latest quarterly survey of almost 1,300 manufacturers showed the sharpest rise in confidence for a decade. However, Sir David Lees, economics committee chairman, said that owed as much to hope as to evidence that recovery would be
sustained.
Sir David added that the recovery was being led by rising export orders, which could be hit if European economies slid deeper into recession. Exports would also suffer if the pound continued rising.
As the European economies have slowed, exporters have taken comfort from growth in the United States. But the US Budget Director, Leon Panetta, said yesterday that he was 'very nervous,' fearing the Christmas shopping boom and rise in optimism after President Bill Clinton's election was only a 'shadow recovery'.
The CBI struck its cautious note as Britain's other leading business organisation, the Institute of Directors, launched a withering attack at its annual convention on government handling of the economy. 'To the extent that we have a recovery today, it is more or less over the dead bodies of Bank and Treasury officials', said Peter Morgan, its director general.
The CBI survey was greeted enthusiastically in the City, where it was seen as pointing to further growth in the year's second quarter after a new year emergence from recession.
Manufacturers are more confident about stepping up production during the summer than for more than four years, with the CBI forecasting a 0.8 per cent rise in factory output in the second quarter. A sharp rise in new orders is expected in the next four months, although similar hopes in January were dashed. Manufacturers were also able to raise prices for the first time in nearly two years.
Hamish McRae, page 22
Business chiefs' attack, page 27
View from City Road, page 28
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments