BUSINESS confidence across the UK has slumped, putting up to 30,000 manufacturing jobs at risk, new research has suggested.

The latest Regional Trends Survey by the Confederation of British Industry (CBI) and Business Strategies showed optimism about export prospects over the year ahead had fallen sharply across every region in the UK.

The survey comes as regional development agency One NorthEast and the CBI, with the North-East Chamber of Commerce, are preparing to hold a manufacturing summit at the end of the month.

The summit, taking place at Newcastle Civic Centre on November 30, will look at ways to support the manufacturing sector in the region.

Yesterday, the CBI said sentiment among businesses, already hit by the slowing global economy, had been further dented by the September 11 terror attacks in the US.

It meant manufacturers were likely to announce a raft of job cuts.

All 11 regions expected employment to fall over the next four months, with the North-East badly affected.

Peter Gutmann, associate director of Business Strategies, said: "The severe slowdown in the global economy and the prospect of worse to come has undermined optimism in all regions."

Sudhir Junankar, CBI associate director of economics, said: "More disturbing, however, is that manufacturers in all regions expect orders, output and jobs to fall over the coming months.

"The longer-term outlook is especially bleak, with investment plans being reined back sharply in virtually all UK regions."

Although the South-East was likely to report the biggest slump in employment, that was only because it was the largest region.

The North would be hardest hit in percentage terms.

Mr Junankar said: "The North-East continues to record a sharp decline in employment, and in the North-West employment has been on a steeply falling path."

But Mr Junankar said there was a glimmer of hope.

"The inflationary outlook is very different from the late 1980s, when we entered recession," he said.

"That gives the Bank of England more scope to cut interest rates and there could be further cuts, especially if economic conditions deteriorate."

He said that, coupled with the Chancellor's public spending policies, meant that the UK would avoid an outright recession next year.