Business optimism has declined at its fastest pace in seven years following Brexit, the Confederation of British Industry (CBI) has said.
The business group's Industrial Trends Survey revealed that optimism had fallen sharply in the wake of the EU referendum result.
The decline is said to be the most dramatic since January 2009.
Expectations that total new orders will rise are at their lowest level since January 2012.
The survey found that 52 per cent of firms were less optimistic about the general business situation compared to three months ago, while five per cent of businesses were more optimistic, leaving a balance of minus 47 per cent.
But the report - which surveyed 506 manufacturers between June 27 and July 13 - said output had risen across the sector at its fastest pace in two years.
The update comes after last week's Markit Flash UK Composite Output Index showed the UK economy has slumped at its fastest rate since the financial crisis in the wake of Britain voting to leave the European Union.
Rain Newton-Smith, chief economist at CBI, said: "Manufacturers picked up the pace over the second quarter, with output growing solidly. We're also seeing encouraging signs of a boost to export competitiveness from a weaker sterling.
"But it's clear that a cloud of uncertainty is hovering over industry, post-Brexit. We see this in weak expectations for new orders, a sharp fall in optimism and a scaling back of investment plans."
