Exporting firms based in the South-East have increased their support for the euro.

Almost a third of the region's manufacturers are now in favour of the currency and most expect the UK to join up before the end of this decade.

The region's branch of the Engineering Employers' Federation (EEF) said the proportion of manufacturers in favour of joining has increased from 21 per cent in January 2001 to 29 per cent.

These firms thought the UK should join between 2003 and 2005.

More than half the region's exporters are undecided, partly reflecting their concerns over the eurozone's economic performance.

The number of firms against entry rose from 14 to 16 per cent.

Businesses in Sussex are more sceptical about the benefits of the currency.

In its latest survey, Sussex Enterprise found support had declined.

A spokeswoman said: "There was a steady increase in those in favour of the single currency which peaked at 19 per cent in the last quarter of last year.

"In the most recent quarter, however, the proportion of businesses wanting the euro to replace the pound dropped slightly to 16 per cent."

Most companies in the EEF survey felt membership by the end of the decade was inevitable.

More than half thought it likely the UK would have joined by 2005.

But only 16 per cent saw this as very likely.

Sixty-one per cent saw it as very likely we would have joined by 2010 and a further 26 per cent saw this as likely.

The increased support came despite companies saying they were less impressed by growth opportunities within the common market.

The proportion of firms seeing the EU as a key growth market dropped from 58 per cent to 44 per cent.

EEF director general Martin Temple said: "Apart from a more competitive exchange rate, what manufacturers need most is to see their largest market, the European Union, perform more strongly."