THE UK recovery suffered a setback today after a survey showed how small and medium-sized manufacturers were continuing to suffer from gloomy trading conditions.
According to the CBI, SMEs involved in manufacturing have seen orders and output fall at the fastest rate for a year.
Of those questioned, 22% said total new orders had risen over the last four months but 40% said they were down.
The balance of minus 18% compares with minus 16% in July and is well below a predicted balance of plus 1%.
For output, 22% said it had risen but 37% said it was down, giving a balance of minus 15% - worse than the minus 11% in July and the predicted plus 3%.
The survey also found that while employment declined at the slowest rate since July 2001 during the four-month period, it still fell further than expected.
Prices continued to fall sharply and by more than anticipated, while unit costs increased marginally.
