November 12, 2004
BBC
The CBI's latest regional trends survey found that export orders are falling in most regions - Northern Ireland and the West Midlands being the worst hit.
Business optimism has declined in most parts of the UK while London and the South East have continued to shed jobs.
The CBI said the outlook for the West Midlands was "particularly gloomy".
Falling orders
Output in the region fell for the second consecutive quarter while expectations about the future are the most depressed in the United Kingdom.
Orders are in steady decline while unit costs are rising faster at firms in the region than anywhere else.
The situation is brighter in Yorkshire and Humber, which enjoyed a third consecutive quarter of expansion.
The East Midlands, Scotland, the South East and London also enjoyed output growth, albeit on a more modest scale.
Employment has risen in Yorkshire and Humber, Wales and the South West over the past six months but jobs have also continued to be lost in Northern Ireland and the West Midlands.
We know that energy-intensive and metal-related industries are being hit hardest — Doug Godden, CBI
Energy costs
Businesses in Yorkshire & Humber were are currently the most optimistic about the future while firms in the North East and South West are also more confident than they were earlier in the year.
Doug Godden, CBI's head of economic analysis, said businesses in the West Midlands and the North East were particularly vulnerable to rising steel prices.
"The impact of rising costs on profitability is a major issue for the second survey in succession," he said.
"We know from the national results that energy-intensive and metal-related industries are being hit hardest."
The CBI's regional trends survey of 770 firms is compiled in association with Experian.
http://www.washingtonpost.com/wp-dyn/articles/A39109-2004Nov10.html?sub=AR