Manufacturers across the UK are less optimistic about their future prospects than at any time in the past seven years, a new study from the Confederation of British Industry (CBI) has revealed.

According to research carried out by the group, just one in four of those manufacturers questioned is currently receiving more orders than usual, in comparison to the 36% that confirmed that orders were down.

Furthermore, 31% said that they feel export volume will decline over the coming months, while 46% felt levels would remain the same, putting those confident of growth very much in the minority.

This slowdown looks set to be exacerbated by the fact that prices within the capital goods sector look set to rise in the immediate future, though feelings on the adequacy of stock levels were found to have improved over the past month.

In comparison, the Office for National Statistics has reported that retail sales in July were 2.1% higher than for the same month in 2007, with shoppers not shying away from the high street despite suffering from price rises elsewhere.