The manufacturing industry has experienced a record downturn.

A recent survey from manufacturer’s organisation EEF has shown that the downturn in the sector has “accelerated in the first quarter of this year and shows no signs of easing”.

The poll of almost 800 companies revealed that output and orders had hit record lows, and that the industry forecast 140,000 job losses for 2009, with large companies most likely to report job cuts.

Balances for output and orders fell to lows of -39% and -54%, while those in the motor industry reported lows of as much as -91% and -89% respectively. This also had a knock-on effect for the metal industry which supplies the automotive sector – the metal industry reported the second-lowest figures after the motor industry.

Steve Radley, EEF Chief Economist, said: “There is simply no hiding the fact these figures make grim reading. The past three months have been extremely difficult for manufacturers, with markets at home and abroad showing severe declines. However, whilst few firms expect things to get better in the near future they are also focusing on making sure they are ready to take advantage of the eventual recovery.

“Business is now looking to the government and the Bank of England to ensure that well-run firms are able to access the credit they need to run their operations.”

According to the survey, forward-looking balances are at their lowest in series history, and EEF believes there will be only minimal recovery in 2010.