Manufacturers hit by recession and the global downturn are slashing jobs across Kent and the south east.

More than a third - 38 per cent - in the region have cut their workforce in the past three months, according to a business trends survey by EEF, the manufacturers’ organisation. Nationally, it expects 140,000 jobs to go this year.

EEF south east regional director David Seall said the latest figures made "grim reading".

Almost all employers have seen a serious deterioration in trading conditions – with 60 per cent reporting lower output volumes. Almost seven in 10 say that total new orders are down. More than a half - 58 per cent - are cutting their capital spending.

The weakness of the pound, which was supposed to boost exports, has had only a minimal effect. Only a quarter of respondents reported an increase in new export orders, suggesting the global slowdown prevented the weaker pound from giving much of a boost.

Mr Seall said: "There is simply no hiding the fact these figures make grim reading. The past three months have been extremely difficult for manufacturers, with markets at home and abroad showing decline."

He called on the Government to get credit flowing again and help companies to invest.

He added: "There is now an urgent need to support companies in hanging on to the skilled workers they will need for when the upturn comes. Government must now consider all possible avenues to help companies deliver alternatives to redundancy."

EEF warns that manufacturing faces a significant squeeze for the rest of this year with only a minimal recovery in 2010.

Given the speed and scale at which the downturn has hit manufacturing, firms are extremely pessimistic about the next three months. In engineering, output is forecast to decline by 10.9 per cent in 2009 and by 0.9 per cent next year.