Mubasher: New UK manufacturing orders dropped in the third quarter at the fastest momentum for three years, as worries over the UK crashing out of the European Union (EU) weighed on morale in the sector.

6% of a survey of 354 companies conducted by the Confederation of British Industry (CBI), compared with a balance of 15% in the previous quarter, marking the lowest balance since October 2015.

The volume of export orders dropped even more rapidly, from a positive balance of 21% of firms pointing that their order books increased to a net deficit of 8%.

“Aside from much-need progress on domestic policy, the government’s number one priority on Brexit must be securing the withdrawal agreement, ushering in a much-needed transition period that will give businesses the breathing space they need,” CBI chief economist Rain Newton-Smith said.

In addition, a net 4% of companies expected the volume of new orders to fall during the next three months.

Investment intentions among manufacturers also deteriorated, with capital expenditure on plant and machinery is expected to drop the fastest pace since July 2009, the survey revealed.

“Ongoing uncertainty around Brexit has made for a particularly tough quarter for the UK’s manufacturers,” CBI manufacturing council chair Tom Crotty said.

“It is not surprising that many firms have recently moved publicly from contingency planning to action as the likelihood of a ‘no deal’ Brexit increases,” Crotty added.