The proportion of British manufacturers reporting a rise in their domestic orders has fallen to its lowest in seven years as Brexit uncertainty and the global slowdown take their toll, a leading employers group said.

Factories also showed the weakest picture for export orders in four years in the April-June period while a slight pick-up for services firms was not strong enough to make up for a weak start to the year, the British Chambers of Commerce said.

"These results indicate that underlying economic conditions in the UK remain decidedly downbeat," BCC economist Suren Thiru said.

The BCC's Quarterly Economic Survey showed price pressures for services firms and manufacturers fell to their lowest level since 2016. Thiru said the prospect of muted inflation would help consumers and allow the Bank of England to keep rates on hold as it waits for the outcome of Britain's Brexit impasse.