Manufacturing orders fell further below normal in June, with order books at their weakest since October 2003, according to the Confederation of British Industry. In its monthly industrial trends survey, the CBI also said that cost pressures remain intense in the wake of sky-high oil prices and a surge in metal prices. It added that the pressure on profit margins is expected to intensify as firms doubt that they will be able to pass on cost increases to their customers. Domestic prices are expected to fall over the coming quarter, with expectations at their weakest since March 2004. "Another very depressing survey - the disappointing news on the manufacturing sector just keeps on coming. Weak activity and squeezed margins do not bode well for employment and investment in the sector," said Howard Archer, chief UK economist at Global Insight. A more detailed look at the survey shows that 39 pct of firms reported that their order books are below normal, while 14 pct say they are above. The negative balance of -25 pct is the weakest since October 2003. Over the past three months, the balance has averaged -24 pct in contrast to an average of -8 pct over the previous 12 months.