All 12 regions report fall in business confidence

ALL 12 major regions in the UK - including Scotland - last month reported that business confidence had fallen, according to research by the Confederation of British Industry out today.

For the first time in two years, businesses throughout the country reported unbroken gloom, with Scottish businesses particularly downbeat on cost inflation.

Research for the CBI revealed that the pace of job losses in manufacturing firms was continuing unabated in many parts of the UK, including London and the south-east, the east of England and Northern Ireland.

These regions, along with the West Midlands and the north-west, were more pessimistic about the employment outlook than the rest of the country.

About 18,000 manufacturing jobs were axed in the three months to July, the survey of 750 firms revealed.

New manufacturing orders fell in the latest quarter, continuing a trend that started at the beginning of the year.

By contrast, export orders increased in Scotland and four other regions after declining in the previous six months.

Trends in manufacturing output were mixed, with Wales and Yorkshire experiencing a sharp decline but firms in the south-west reporting a rise.

Doug Godden, the CBI's head of economic analysis, said: "This generally gloomy survey offers a slight silver lining, with the growth of companies' unit costs becoming more manageable.

"The south-west has reported a reduction whilst everywhere else outside of Scotland and Wales has seen slower cost growth. Yet, despite this, firms are not enjoying a pick-up in profits, with their pricing power weakened in the face of tough conditions in the domestic market."