Region hit as manufacture slows
August 9, 2004
Manufacturing output in the West Midlands has slowed, according to a survey by the Confederation of British Industry (CBI).
Confidence, orders and job prospects are lower in the region than anywhere else in the UK, says the CBI.
Part of the problem is the reliance on metal-based industries, as rising steel prices hit engineering firms hard.
The organisation forecasts 5,000 manufacturing jobs will be lost in the region in the next three months.
The CBI report says the West Midlands region is lagging behind the rest of the country, which is showing signs of recovery.
And the report says last week's interest rate rise will add to the gloom as it will strengthen the value of the pound, making exporting harder.
This story first appeared on the BBC News Site.
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