The latest survey by the Confederation of British Industry (CBI) showed on Tuesday the UK manufacturers’ order books declined sharply in July.

According to the report, the CBI's monthly factory order book balance dropped to -34 in July from -15 in the previous month. That was the lowest reading since April of 2010. Economists had expected the reading to stay at -15.

According to the report, new orders declined noticeably in the quarter to July, as both new domestic and new export orders dropped at their fastest respective paces since the financial crisis. Manufacturers continued to grow their stocks of raw materials and finished goods, but at a slower pace than in the three months to April, when stocks were increased at the fastest pace on record. Firms expect their stocks of finished goods to reduce a little over the quarter ahead, but stocks of raw materials and work in progress are expected to remain stable.