Job losses at Gatwick will slow the growth rate of the Sussex economy to less than the national average.

The economy, which has outperformed much of the UK for several years, is set to lag behind the South-East next year.

The latest cut in interest rates to four per cent is not seen as the answer to the struggling manufacturing sector.

Experts say the 0.5 per cent cut will help but they want the Chancellor to introduce additional support in his pre-Budget report.

Mark Froud, director of policy at Sussex Enterprise, said interest rate cuts alone would not make a big difference.

He said: "The Bank of England has listened to the voice of business to protect the economy from what should be temporary difficulties. The half-point cut will come as a relief to the business community as a whole but in particular the manufacturing sector, which is currently going through tough times.

"Interest rate cuts, however, will only superficially help manufacturing and we need appropriate support for the troubled sector in the Chancellor's pre-Budget report later this month. Most importantly, no tax increases. Any rise in tax will be a blow to an already suffering sector.

"The current problems in the United States are not likely to alter until next spring. Cut backs over there are having a knock-on effect over here.

"Job losses in and around Gatwick are going to slow-down the Sussex economy's growth from an above national average 2.5 per cent last year to 1.3 per cent next year. The national average for next year is predicted at 1.7 per cent.

"Firms should try not to make a knee-jerk reaction to world events. Laying off good staff is easier than recruiting them when the economy picks up."

Bobak Sodagar, senior lecturer in economics at Brighton University, said the Sussex economy was very susceptible to outside pressures.

He said: "We have a lot of service-based businesses and a large financial sector. They are suffering badly from the aftermath of the terrorist attacks and the slowdown in America and Europe.

"Lowering interest rates wasn't the best way of dealing with it because there has not been a slowdown in consumer spending.

"But it need not be all bad news. The public sector is a very big employer and has suffered from many years of under investment. It will continue to recruit and take some pressure off the jobs market.

"There has also been an increase in consumer debt. If people can't service these debts, there will be more problems."