NEARLY 30,000 manufacturing jobs will be lost during the next three months despite companies winning new orders, according to a new report.

Research for the Confederation of British Industry (CBI) revealed that job losses should ease, but employment will continue to fall.

The North-East and Yorkshire are expected to escape relatively unscathed, while London and the South-East will suffer the most.

Steve Rankin, CBI North-East regional director, said: "Talking to companies around the region, it is clear we have been experiencing a steady upturn for some time.

"But we fell much further than most other regions during the recession, so we are starting from a much lower base. Demand is up, but companies are still not making any money.

"We have turned the corner, but the climb back is going to be long and difficult."

The CBI survey showed business optimism had improved markedly in most regions. New export orders fell in half the country, but grew in several areas, including Yorkshire and the Humber.

For the first time in three years, manufacturing firms in every region of the country expected output to rise during the next few months.

Another survey, by the GMB union, showed almost 6,000 manufacturing jobs were lost last month.

Eastern England was the hardest hit, with 1,722 job losses announced by 12 firms, two of which were moving abroad.

Kevin Curran, GMB general secretary, said it had been a gloomy start to the year for manufacturing. "Despite Britain's strong economy and rising employment rates, the manufacturing sector continues to crumble," he said.