LONDON (AFX) - UK manufacturing order books fell to their lowest level for nearly two and a half years in August while output is set to fall, the Confederation of British Industry said in its August monthly industrial trends survey.
Manufacturers say demand for their goods, at home and abroad, has weakened substantially since the start of this year.
Sudhir Junankar, associate director of economic analysis at the CBI, said: "The weakening of demand to its lowest level for two and a half years is yet more evidence of the impact of the global economic slowdown on manufacturing."
"Falling demand is increasing competitive pressures in the domestic market and forcing factory gate prices down. Worsening output expectations suggest many firms see no immediate prospect of their markets reviving," he added.
Results of the August industrial trends survey.
Figures are expressed in percentage points and show the balance of positive responses net of negative ones.

_________________ Aug Jul Jun May
Total order books -29 -26 -22 -24
above normal
Total export order -39 -35 -29 -32
books above normal
Stocks "more than +10 +13 +16 +16
adequate"
Expecting to raise -13 +3 +2 -2
output in next 4 mths
Expecting to raise -16 -16 -17 -12
prices in next 4 mths