NORTH-west manufacturers report a rapid decline in business confidence.

Job The latest Regional Trends Survey published by the Confederation of British Industry and Business Strategies Ltd says total orders and export orders fell markedly in the last four months.

Employment remains on a sharply downward trend and further heavy job cuts are expected in the next four months, the survey shows.

investment intentions in plant and machinery over the next year are weak -- making the North-west the second most negative region in the country.

The national picture reflects business confidence among UK manufacturers falling at its sharpest pace since January, 1999.

The deterioration is blamed on the effects of the global slowdown coupled with a continuing squeeze on manufacturers' margins.

But the survey organisers concede that the scale of the decline across the UK could be overstated if it reflects both the US slowdown and the foot and mouth crisis.

Also, the falls in confidence in the North-west and North-east are not as sharp as those in the south of the country.

Sudhir Janankar, CBI Associate Director, Economic Analysis, said: "With confidence falling and manufacturers' margins under further pressure, plant and machinery investment intentions are not surprisingly negative in nearly all regions.

"For the first time since the UK economy slowed down during 1999, firms consider uncertainty about demand to be the key constraint on their investment plans.

"With inflation prospects good, this gloomy picture across most regions suggests there is nothing to stop a quarter point cut in interest rates this week."