Gloom 'dents factory confidence'

The UK has maintained some of its car making industry

UK manufacturers are less confident about their business prospects amid the worsening global economic outlook, a survey suggests.

Only firms in Wales showed a growth in optimism for the year ahead, the research by business body, the CBI, and Experian said.

Overall, the volume of orders received by UK firms over the past three months held firm, the data suggested.

However the weaker pound has helped most exporters see a pick-up in orders.

The falling currency makes their goods cheaper to potential customers.

Companies in Wales, Scotland, the West Midlands, the South West and Yorkshire and the Humber all reported overseas sales growth.

Only the North West and East Midlands saw export demand fall.

Experian's Peter Gutmann said that the news on exports was "one bright spot in a fairly downbeat picture".

General outlook was gloomiest in the South West, the east of England and the South East and London, which all expected a slip in production in the next three months.

Manufacturers across the UK reported a sharp rise in costs - driven largely by bills for energy and raw materials.

"The slowdown underway in other parts of the economy is now being felt in the manufacturing sector," said the CBI's head of economic analysis, Lai Wah.

"Look under the bonnet however, and you'll see some market regional differences."