ORDER books are still empty as demand for goods from the West Midlands slump.

Only the Yorkshire & Humber region matched the region's gloomy outlook.

Production is declining too, in contrast to the East Midlands and south-west which is reporting rising optimism.

Manufacturers across the country anticipate job losses - but the picture looks bleakest in the West Midlands.

"There is no let-up in the pessimism in the West Midlands, the only region where total output is anticipated to fall in the next four months," said the CBI's associate director of economics, Sudhir Junankar.

Rising costs

"The survey results for manufacturing employment show further job cuts.

"Profit margins are being squeezed further because of rising unit costs and lower prices.

"Combined with intense competition and the high level of sterling, profit margins remain extremely tight for a lot of manufacturers.

"More will go to the wall, meaning further job losses.

"Total orders, export orders and total output all declined for the second consecutive survey. Manufacturers are the most pessimistic about employment prospects in the UK."