THOUSANDS more job cuts are expected in the manufacturing sector as firms step-up cost reduction initiatives to combat soaring energy bills and a slump in consumer spending, according to the CBI.

Figures released by the industry body have revealed that job losses in manufacturing across the UK would average 25,500 for each quarter of 2005, up from 22,000 last year.

But the Engineering Employers' Federation (EEF) Northern director Alan Hall, said he had not noticed a sharp rise in job cuts across the region.

"I accept that the manufacturing sector is under acute pressure due to cost implications, but I haven't noticed that job losses are rising or escalating in some way," he said.

"Companies are showing signs of distress though, particularly because of high energy prices. Within the sector it is the strong, high value businesses that are much better placed to handle these pressures."

The quarterly industrial trends survey from the CBI also found that orders and output for manufacturers fell faster than had been expected over the past three months.

There was a pick up in export orders nationwide in July, with the North-East exporting more than most other regions.