Recession fears for manufacturing sector

The latest CBI survey on manufacturing backs fears that the manufacturing sector is slipping back into recession.

It shows orders were falling in the run-up to Christmas.

The CBI says weaker export markets means demand has dropped back to the levels seen a year ago, in turn putting renewed pressure on margins and profits.

Doug Godden, head of economic analysis, comments: "The glimmer of hope among manufacturers has been extinguished for the time being."

Figures for December show 45% of manufacturing firms believe total orders are below normal with just 13% seeing an improvement.