Manufacturers expect orders and outputs to fall over the next three months, according to new figures.

A survey by the CBI also found the proportion of manufacturers less optimistic about the next quarter than three months ago is 30 percentage points higher than those feeling better about the economy.

CBI chief economic adviser Ian McCafferty said: "Manufacturers saw modest growth in orders and production over the past quarter.
 
"However, sentiment has deteriorated sharply, and firms expect sizeable falls in activity over the next three months. The quarterly fall in sentiment is the largest since the height of the recession in mid-2009.
 
"Confidence among manufacturers is no doubt also being sapped by uncertainty over developments in the Eurozone, leading to broader concerns over global growth."

Among those that took part in the survey, a small majority saw domestic orders rise while the picture was even in terms of export orders.

The availability of export credit finance saw was identified as an increasingly important factor behind falling overseas sales.

Source: The Business Desk