Manufacturers are expecting the sharpest contraction in output in 30 years, according to a CBI survey published on Wednesday, which noted that the only time that a deeper decline had been expected was for two months in 1980 as the UK entered a recession.

The CBI Industrial Trends Survey, which covers October, came as the EEF, whose members are largely manufacturers, reported that one in four companies which had negotiated a pay deal in three months to the end of September had either deferred a decision or elected to freeze pay.