The CBI has reported a decline in 2009’s manufacturing output.

The Confederation of British Industry (CBI) has reported the worst fall in demand for UK manufactured goods in 30 years due to a record decline in output over the past three months.

The latest CBI Industrial Trends survey revealed that 60% of companies reported a drop in new orders – the lowest since October 1980.

This has contributed to the fall in employment within the industry. The CBI has reported a loss of 62,000 jobs in manufacturing during Q1 and predicts 51,000 more will be lost in Q2.  Internal training plans have also been put on hold by most companies, resulting in the fastest rate of training cutbacks since 1989.

Ian McCafferty, CBI’s Chief Economic Adviser, said: “The first quarter of 2009 was extremely tough for UK manufacturers but this survey shows firms hope that the worst may be behind them, with the pace of decline slowing slightly. Firms have run down their stocks more sharply this quarter, as demand and output have collapsed, but stock levels are still considered too high.

“However, firms are hopeful that the pace of decline in manufacturing activity will moderate slightly in the next three months, and general sentiment is falling less rapidly for the first time in seven quarters.”

Business as a whole has experienced a decline in the last three months. According to figures from the Office for National Statistics (ONS), the UK economy – its Gross Domestic Product (GDP) – shrank 1.9% in the first three months of 2009. Along with the previous three months, the UK experienced the worst six month decline in GDP since the ONS started recording figures.