Last week, official figures showed Britain's manufacturing industry had recorded its worst fall in output in more than 10 years, heightening fears over the health of the UK economy.
The depressed state of the sector is thought to have been a major factor in the Bank of England's decision to cut interest rates to 3.75% last week.
Small- and medium-sized firms are suffering the most in the current manufacturing downturn, employers' organisation the CBI has said. A report into the small- and medium-sized enterprise sector (SME) found orders, output and confidence falling at their fastest rates for more than a year.
The CBI's study found 19% of smaller firms enjoyed higher order levels over the previous four months, while 41% saw orders fall.
The balance of minus 22% is the worst since October 2001. Only 11% of SMEs felt more confident about the four months ahead while 40% were less confident.
