Exporters in Sussex and the South East are losing confidence in the economy.

A survey of industrial trends by the Confederation of British Industry (CBI) shows manufacturers are suffering in most UK regions, with orders lower and confidence down.

The survey, carried out in conjunction with business support group Business Strategies, showed particularly steep falls in business confidence in the West Midlands, South West and North West.

But the pessimism also spread to exporting firms, with companies in the South East, West Midlands and East Midlands reporting sharp falls in confidence.

Sudhir Junankar, the CBI's associate director of economic analysis, said: "This reinforces our concerns for manufacturers across the UK.

"Upbeat expectations for output in the last survey have not surfaced and production fell in all but two regions.

"Despite the fall in sterling since last spring, manufacturers continue to battle with a strong pound, reflected by falls in export orders in many regions.

"The Bank of England's decision to keep interest rates on hold will have brought a sigh of relief."

Employment estimates based on the survey forecast jobs in manufacturing falling in seven of the 11 regions in the third quarter of this year.

The largest percentage falls are expected in the North West and Wales.

In contrast to the national picture, manufacturers expect to take on staff in Scotland and Northern Ireland.

They expect employment to remain relatively stable in the North East and West Midlands.