by business editor Trevor Sturgess

Manufacturing output across the region has declined in the past three months amid growing economic uncertainty.

According to the latest Manufacturing Outlook survey by EEF, the employers' organization, and BDO, manufacturers are facing challenging conditions which for some have stalled plans to take on more workers.

Basic metals, rubber and plastics and electronics both reported negative output and orders balances. But it was not all gloomy news, with some sectors such as motor vehicles and mechanical equipment enjoying a strong quarter. This pattern looks set to continue with other transport in particular looking positive, on the back of strong demand from aviation.

Prospects for many manufacturers are not promising, with South East firms expecting falling output and orders in the next quarter.

The EEF has downgraded its nationwide manufacturing growth forecast for 2012 to just 0.9%, well below its previous forecast of 2.2%.

Jim Davison, EEF South East director pictured above, said: "Manufacturing has been a key pillar in the recovery so far and it looks like the sector will still end the year on the up with positive output and orders responses posted over the past quarter. However, short-term confidence has all but fallen away."