LONDON (AFX) - The level of business confidence among UK manufacturers fell at the sharpest pace since January 1999, according to the Confederation of British Industry and Business Strategies Ltd. The latest regional trends survey revealed that the dip in manufacturing confidence was due to the effects of the global slowdown coupled with a continuing squeeze on manufacturers' margins.
It added, however, that the scale of the decline across the UK could be overstated as it may also reflect both the U.S. slowdown and the foot-and-mouth crisis.
The sharpest falls in confidence were reported in the southern regions -- with the east of England, the south east and London as well as southwest England showing steep falls.
Employment in the south east and London fell at a stronger pace than for the UK as a whole for the fourth successive survey, with a further marked fall expected in the next four months.
"Estimates based on the survey show that a further 17,000 manufacturing jobs will be shed in the second quarter of 2001," CBI said.
While business confidence fell in Wales and Northern Ireland, the declines were less pronounced than in England.
The northeast and northwest regions registered large falls in confidence, although not as sharp as in the south, reflecting substantial declines in total orders, sharpest declines in export orders and along with the east Midlands, the steepest fall in output.