British manufacturing is officially in a recession, but the GPMU and BPIF are still in opposing camps when it comes to offering a solution to manufacturings ills.


The worst figures for a decade showed a 2% plunge in manufacturing output in the second quarter of this year, according to the National Statistics Office.


The figures also add to the pressure on the Bank of England to reduce interest rates further, but it faces a dilemma, with high street spending rising by 8.4% last month.


BPIF director of corporate affairs Mike Hopkins said it was difficult to see how a recovery could be bought about, but felt a move into the euro was definitely not the answer.


But GPMU deputy general secretary Tony Burke said uncertainty over the UK not being in the euro was one of the key issues highlighted by printers.


"As a union we are in favour of early entry into the euro as soon as possible."


Peter Scott, director general of the Paper Federation and Confederation of Paper Industries, said the situation was a continuation of what the paper industry had been experiencing for some time.


"We have been encouraging the government for some time to enter the euro, but this has to be at the right rate."


The Confederation of British Industrys regional breakdown of its survey of manufacturers also suggested that as many as 30,000 manufacturing jobs could be lost between July and September, while union leaders warned that as many as 250,000 jobs could be at risk.


Southernprint managing director Chris Smith said printing was suffering from "unsustainable" pricing. "At the end of the day it is about getting a fair price for the product."


Pensord Press chief executive Tony Jones said his firm was always experiencing fierce price competition, but having studied recent statistics on run lengths, pagination and paper weights, downturns were not evident so far.


Story by Andy Scott