More than 8,900 Midlands jobs were secured through foreign direct investment (FDI) last year but the region has attracted its lowest levels of project activity in four years, according to new research.
The annual UK Attractiveness Survey, published by financial services firm EY, said 8,915 jobs were created by FDI projects during 2018 but this was tempered by a drop in actual projects to 123, from 140 a year earlier.
Both the West Midlands and its counterpart in the East suffered a year-on-year fall in FDI projects, from 97 to 83 and 43 to 40 respectively.
This is the lowest number of FDI projects across the Midlands since 2014, according to EY, while Birmingham saw its own number rise from 21 in 2017 to 22 last year.
The Midlands saw most of its investment come from the US, representing 23 per cent of the total, with Germany (12 per cent), India (eight per cent) and France (seven per cent) all contributing.
Birmingham is listed as the second best-performing UK location after Manchester while Coventry and Derby joined the city among the country's top 20, ranked in joint 11th place alongside Cardiff.
The downturn in the Midlands' fortunes was reflected in other regions across the UK with Yorkshire and the Humber (40 per cent), North West (33 per cent) and North East (25 per cent) all recording double-digit declines on 2017 levels of investment.
Job creation in the Midlands of 8,915 outstripped the Northern Powerhouse (3,381), Greater London (4,676) and the southern region of England (6,349).
EY said the UK as a whole remained the number one destination for FDI in Europe in 2018, ahead of Germany and France, with 1,054 projects.
The UK's leading sector in terms of FDI projects was digital for the sixth year running.
Simon O'Neill, managing partner at EY in the Midlands, said: "Our latest report demonstrates a mixed picture for the Midlands region in terms of foreign direct investment.
"It's fantastic to see Birmingham, Coventry and Derby listed as top 20 UK locations for attracting inward investment, with many other locations in the Midlands attracting a large number of FDI projects.
"However, while inward investment in the region remains high when comparing 2018 to years prior to 2015, a 12 per cent year-on-year drop in the number of projects cannot be ignored.
"At a time when concerns over Brexit appear to be reducing the UK's appeal currently and are hampering its ability to attract capital, it becomes increasingly important for the Midlands to play to its strengths.
"The region must continue to invest in its own future - such as working hard to attract and retain high-skilled talent and continuing to build its existing strengths in areas such as high value-add manufacturing."
