A survey of small and medium-sized manufacturers in the UK has found business confidence remains low.
A Confederation of British Industry (CBI) survey found that 15 per cent of small and medium-sized firms (SMEs) were more optimistic about their general business situation but that 43 per cent were less optimistic.
This gave a balance of minus 28 on the CBI's scale for the quarter to July - against minus 30 in April.
Vice-chairman of the CBI's SME council Mr Simon Bartley said: "SME manufacturers are facing extreme pressure from the global slowdown. They continue to experience falling orders whether they are suppliers to larger UK manufacturers or directly to US or international companies.
"Although the latest cut in interest rates may avert further declines in confidence, SMEs are reliant on an improvement in the global market for an upturn in business and an increase in investment," he said.
PA