Manufacturers are expecting the sharpest contraction in 30 years, according to a CBI survey published on Wednesday which said that the last time the sector’s mood was so black was back in 1980 as the country went into recession.

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