Manufacturers face a difficult year as the imbalance between the service and manufacturing sectors continues, according to the Confederation of British Industry.
It has cut its manufacturing output forecast for 2000 from the 2.6% rise predicted in February to just 0.5% in it latest quarterly economic forecast.
However, exports are predicted to show growth of 5.1% in 2000 and 4.6% in 2001 as world trade improves.
And there was good news for exporters as the report forecast a small increase in the value of the euro against sterling in 2001.
`At the moment we think sterling is likely to fall back from its peak, not only against the euro but against all currencies, by the end of 2001. This should help the UK manufacturing industry out’, said Muscatelli.
Copyright: Centaur Communications Ltd and licensors