Britain's Engineering Employers Federation (EEF) lowered its growth projections for the British economy as it foresees 0.2% expansion this year compared with 1% growth projected in December, citing the negative impact of the euro area debt crisis on Britain.

However, the EEF expects a pick up in manufacturing to record 0.5% expansion in 2012 and 1.8% next year. A manufacturing gauge is estimated to rise 28% from zero in the second quarter.