BUSINESS confidence in the North-East has fallen, according to a survey.

The study, by the Confederation of British Industry (CBI) and Experian Business Strategies, showed that the only two regions to avoid a decline in outlook over the last quarter were Northern Ireland and London and the South-East.

But there was good news for the region, as it was one of just three whose firms recorded a total rise in orders.

The North-East and Northern Ireland reported the highest increases and both showed the only rises in export orders. It also expects total orders to rise over the next three months.

With profit margins under pressure and a great deal of spare capacity around the country, only the North-East and the North-West plan to increase investment in plant and machinery.

Doug Godden, CBI head of economic analysis, said: "Firms across the UK are struggling to keep their heads above water, with severe job shedding predicted in almost every region and confidence low.

"Manufacturers will take some comfort from positive export expectations scattered across the country, but are in no doubt about the uphill battle that lies ahead."