Hopes for a quick rebound in the economy suffered another body blow on Monday after new figures showed that manufacturers were still locked in the grip of recession .
The latest CBI snapshot of the sector showed smaller producers suffered a steady decline in orders over the last four months, with expectations of a turnaround failing to materialise.
The news comes less than a week after Scottish Executive figures showed that Scotland was officially in recession for the first time in 20 years.
CBI Scotland responded to the figures by becoming the latest business group to say that there was now an argument for the Bank of England to cut interest rates.
According to the CBI, more than one-third of SME producers suffered a downturn in output and orders in the three months to July.
