Three-quarters of UK manufacturers set to cut jobs this year – FT

The Financial Times has written an article that states that “almost three-quarters of UK manufacturers are preparing to cut jobs in the next six months, according to new figures that will heap further pressure on the government to protect employment ahead of an economic stimulus package expected next week.’

Lead paragraphs

More than 10,000 jobs have already been put at risk in the past week across industries such as retail and aviation.

Now, manufacturers are also warning of widespread redundancies as the government’s furlough scheme begins to wind down. More than 40 per cent of manufacturers said they would make job cuts before the end of the year, according to a survey of members by Make UK, which represents the sector. A further third said redundancies were possible. 

The article goes on to not that the UK’s chancellor, Rishi Sunak, is expected to reveal a package of measures to boost the economy, from tax cuts to investment pledges, with companies calling for the immediate extension of financial support to help them stay afloat. 

But executives said they were already shifting from using the furlough scheme to pay their workers to starting redundancy programmes given worries that demand will remain subdued for some time.

Last week, Rishi Sunak, the chancellor, said additional government measures would depend on how consumers reacted to the reopening of services.

• The GfK Group UK Consumer Confidence, strongest since start of COVID lockdown

Today, the UK consumer confidence index, published by the research company GfK, posted an improvement to net minus 27 in the week to June 26, rising nearly 10 points from a historic low of minus 36 in the second half of May.

“Consumers appear to be slightly more confident as lockdown loosens across parts of the UK,” said Joe Staton, GfK’s client strategy director.

this could give the pound some well-needed support in coming sessions and as the article states, “more positive consumers could translate into higher spending, fostering economic growth, while pessimism could prompt consumers to save instead.”

• EUR/GBP to head on towards 0.92 on a 1 to 3 month view – Rabobank