OPTIMISM among UK manufacturing firms is at its lowest point for 12 years with falling orders and job cuts, according to a new report.

Research among 4,000 firms by BDO Stoy Hayward showed that manufacturing was being hit hard by a lack of funding, cuts in investment and lower consumer spending.

Tom Lawton of BDO Stoy Hayward said: “For many months now most manufacturers have seen a consistent fall in new orders and have been either reducing working hours or staffing to try and keep their heads above water.”