by Trevor Sturgess

Recession is still hitting manufacturing, with firms reporting weak demand for UK goods at home and abroad, and not expecting much improvement in the next quarter.

Published soon after official figures showed another steep fall in the number of manufacturing jobs - down nationally by 221.000 to just 2.65m in a year - the latest Industrial Trends Survey by the CBI underlines the seriousness of the situation.

Of the 555 UK manufacturers surveyed, eight per cent described the volume of their total order books as above normal, while 56 per cent said they were below normal, giving a balance of -48 per cent. That was a slight improvement on the balance of –54% in August, but is the 15th consecutive month where a negative balance has been recorded.

Despite the weakness of the pound, export order book levels were well below normal. Seven per cent said they were above normal and 53 per cent below normal, giving a balance of -46 per cent, little changed from -48% in August.

Firms anticipate little change in production in the coming quarter, with 27 per cent expecting output volumes to fall in the next three months, while 25 per cent predict an increase. The resulting balance of -2 per cent is the least negative prediction since June 2008.

Ian McCafferty, CBI chief economic adviser, said: “The end of the dramatic de-stocking that characterised the first half of the year has allowed manufacturing output to stabilise, but order books remain depressed, and the outlook uncertain.”