The UK is suffering its fastest fall in demand for goods since 1999, which is causing the sharpest drop in manufacturing confidence in 28 years.

The CBI's Industrial Trends Survey predicts 23,000 manufacturing jobs will be shed in the third quarter of 2008, rising to 42,000 in the fourth quarter.

Economists blame the global financial crisis for the downturn and predict a reduction in spending on machinery and buildings over the next year. 9% of companies said output was likely to be limited by credit or finance difficulties in the next three months.

Andrew Brown, BPIF, said: "The decline in manufacturing is often mirrored in print, but, as it's a service industry, it also depends very much on the marketing and advertising markets.

"The usual boom at Christmas is likely to be flattened this year because of the retail market. It's clearly a worry but we have to be careful not to talk ourselves into a worse state.

"The BPIF's reports also predict tough times. We would advise printers to cut costs and look at ways to add value so they are not seen as commodities so much. Kit manufacturers could also be affected, leading to credit issues for printers."

He also recommended that printers attend a BPIF/Vision in Print conference at The Barcelo Hotel, Daventry, on 4 November entitled How to Thrive in a Recession.

Ian McCafferty, the CBI's chief economic adviser, said: "This survey was conducted during a period of exceptional economic turbulence, so it is unsurprising that confidence has taken such a hit.

"However, the sharp falls in orders and output show that the slowdown in the UK economy is now spreading to sectors previously resilient to the weakness in the banking and housing markets."

"It is also of serious concern that constraints on capital now appear to be affecting manufacturers, in a way that had not been the case earlier."