The economic outlook is gloomy, judging by the findings of two national surveys.
The CBI's latest quarterly industrial trends survey shows a decline in domestic and export orders, weakening investment intentions and increased job losses.
Manufacturers continued to report a decline in business optimism, although the picture has improved since April when confidence was affected by the foot-and-mouth crisis.
Meanwhile, UK firms suffered their worst period of economic activity for over two years in the last quarter, according to a survey by the Engineering Partnership.
The EP said the outlook remained bleak, with recession closing in on manufacturing while investment for both sectors was at its slowest for two years.
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