Factory orders slump to a new low

KEY manufacturers have seen orders plummet and business confidence for the next three months has collapsed, according to a British Chambers of Commerce survey to be published on Thursday.

Domestic orders have dropped dramatically in the East of England. In contrast, service providers show one of the highest increases in business.

Firms in the West Midlands are also suffering and the outlook for employment is gloomy, according to the survey.

The BCC will call on Chancellor Gordon Brown to address the plight of manufacturers tomorrow in his spending review.

A spokesman said: 'Confidence is low and there is the threat of an increase in interest rates. Companies are not investing in their own businesses or in training.

'Brown should look at raising skills through education and providing incentives.'