Firms are predicting a modest pick-up in business in eight out of nine English regions after spending most of the year struggling against a global economic slowdown.
This is the main finding in a new twice-yearly survey of the regional economy, co-published by the CBI and all the government's regional development agencies (RDAs).
The survey - covering 3,000 firms from all sectors in the nine English RDA areas - suggests the overall business situation will improve over the next six months, albeit from a low base.
Sentiment was strongest in the south -west and midlands but much less positive in the south -east, London and east of England where the downturn is hitting hardest. The east of England was the only region where a majority of firms thought conditions would worsen.
The shift in mood appears to have been triggered by signs of improvement in domestic orders and expectations of increases in export demand.
