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Results of the latest Regional Trends Survey suggest a bleak outlook for manufacturing firms in the South of England over the coming year.

The Regional Trends Survey, published by Experian and the Confederation of British Industry (CBI), revealed a drop in volume of new orders in six regions across the UK, including the South West and South East.

The CBI has estimated that 18,000 manufacturing jobs will be lost in the second quarter of this year as manufacturing firms in the South East, South West, London and the East of England suffer a drop in demand.

Lai Wah Co, Head of Economics Analysis at the CBI, said that the slowdown “in other parts of the economy is now being felt in the manufacturing sector. Look under the bonnet, however, and you’ll see some marked regional differences. Welsh firms actually feel extremely upbeat after a very strong quarter.”

Unlike firms in the South of England, the survey revealed that Welsh firms have reported positive growth, and are confident about export prospects in the year ahead.

Experian’s Peter Gutmann said the survey suggests “the pound’s 14% depreciation against the euro over the past year is helping to support manufacturing exports, at a time when eurozone growth is faltering. This is the one bright spot in a fairly downbeat picture. Without this boost, manufacturers would be facing even tougher conditions in the coming months.