Industry’s confidence sinks to low ebb

Manufacturers are at their lowest ebb for at least six years as orders tumble and firms shelve hiring and spending plans amid darkening global growth prospects, according to recent figures.

The EEF manufacturers’ organisation’s quarterly survey paints a worrying picture of the health of a sector which accounts for 10 per cent of the overall economy and employs 2.6 million.

Its latest snapshot of 20,000 members has revealed a sector blighted by the high-profile woes of the steel industry and a tumbling oil price, prompting producers to slash investment projects.

More firms reported plans to cut investment and hiring than those planning to grow them for the first time since the first three months of 2010, the EEF reported.

Firms are at their most pessimistic on domestic orders since 2009, while the EEF has also cut its growth forecasts for the sector to a 0.1 per cent decline over 2015.