already taken the steps necessary to ensure.

MANUFACTURERS believe the worst of the decline in the beleaguered sector will be over by the end of this year, according to a new report.

Company bosses in the North-east are beginning to voice a growing optimism despite falling output and the increasing number of job losses, says the new quarterly survey by the manufacturers group EEF.

While North-east manufacturers continue to report negative growth in their production and balance sheets, the figures are an improvement on the previous survey.

Although it expects job losses to continue throughout the year, EEF now believes the region should start to see real signs of a recovery by the end of 2009.

EEF regional manager Tony Sarginson said: "The fact that firms are more optimistic is very encouraging. It may be because most of them have already taken the steps necessary to ensure they can go on trading. Although I expect lots more job losses over the coming months, I would expect to see some signs of recovery by the end of 2009 and into 2010." The survey did show that while jobs are still being cut and margins squeezed there are hopes of an upturn in some sectors such as the boost to the motor sector from the government's scrappage scheme..