THE recession in the manufacturing industry is hitting all regions in the UK - with only a glimmer of hope that things could improve, says a new survey.

The report, by the CBI and consultancy firm Business Strategies, showed that in the past four months the number of orders fell at the fastest rate for two-and-a-half years, forcing firms to cut jobs and prices. It also showed export orders fell, but that the picture for the next quarter was not as bleak.

Business confidence has deteriorated in most regions compared with four months ago, although the decline is not as steep as in the last survey.

Low confidence levels have also had an impact on the willingness of firms to invest, with planned cutbacks in spending on plant and machinery universal.

UK employment expectations are at their worst since the recession of 1992 and an estimated 44,000 jobs will be cut in the first three months of this year.

Business Strategies said the areas worst hit by the downturn were the traditional manufacturing heartlands of the North-East, the North West and Yorkshire. These had been joined by areas more exposed to the electronics industries, including Scotland and Northern Ireland.

Peter Gutmann, associate director at Business Strategies, said: "Manufacturing undoubtedly faces further severe problems in the near term as world demand remains weak."