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Manufacturing activity drops sharply, with fears of worse to come - CBI survey

UK manufacturers reported the quickest falls in output volumes and total new orders since 2009 in the three months to April, while business optimism plunged at a record pace. That's according to the latest CBI quarterly Industrial Trends Survey.

The survey of 330 manufacturing firms saw domestic orders drop at a similar pace to the last quarter, while the fall in export orders accelerated. At the same time both business and export sentiment plunged at a survey-record pace.

Manufacturers expect the quick fall in output in the quarter to April – the sharpest decline since the financial crisis – to precede a sharper contraction in the next three months, with firms reporting the weakest expectations on record. Additionally, manufacturers expect both new domestic and new export orders to fall at a much faster pace next quarter.