Hopes of an upturn in the UK's beleaguered manufacturing sector were dealt a blow yesterday as figures showed order books weakening.

The gloomy picture, contained in the CBI's latest monthly industrial trends survey, reverses signs of improvement seen in its August study when order books hit their best level for nine months.

Some 45 per cent of manufacturing firms reported total orders were below normal, with only 12 per cent saying they were above, when questioned between August 21 and September 10, the employers' organisation said.

The balance of 33 percentage points between positive and negative responses contrasts sharply with a gap of just 24 points last month.

And UK manufacturers remained under pressure on the international stage, with the study indicating a slight deterioration in export orders.

The CBI found 44 per cent of firms believed export orders were below normal, with only ten per cent saying they were above normal.

The balance of minus 34 compares with minus 32 in the previous two surveys.

CBI chief economic adviser Ian McCafferty said: "Some firms had hoped the worst was behind them but manufacturers are not out of the woods yet.

"Order books have weakened once again and output remains flat.

"With few sustained signs of recovery, the manufacturing industry remains under severe pressure."

With orders depressed, the study found stocks were building up, reaching their highest level for five months.

Some 26 per cent of firms said current stock levels were more than adequate while only five per cent said they were insufficient.

The balance of 21 contrasts with a 16-point gap in last month's survey.

The survey comes just a day after official figures showed a further contraction in the manufacturing workforce.

Claimant count unemployment across the economy as a whole fell to its lowest level since 1975.

And separate figures published today on the UK retail sector showed a surprise rise in High Street activity last month, despite fears that the heatwave would have wiped out growth.

Friday September 19, 2003