Up to 8,000 manufacturing jobs are likely to be lost in the first three months of this year, a survey has predicted.

The study of regional manufacturers by the Confederation of British Industry (CBI) found job losses were expected to continue in all but two areas, Northern Ireland and the South West of England. Manufacturing job prospects are worst in the South East, the North West and the West Midlands, said the CBI.

Despite this, the level of pessimism about what the future holds for UK's businesses is declining, although confidence as a whole among manufacturers is continuing to fall.

Manufacturers in the South West and Yorkshire and Humber regions reported pronounced increases in confidence about their export prospects, followed by Scotland and the East Midlands. But in the South East, Wales and eastern England manufacturers were more gloomy.

Associate director of economic analysis Sudhir Junankar said: "This survey paints a slightly more encouraging picture."