The latest quarterly trends survey by Picon has shown a fall in confidence among machinery suppliers.

The suppliers association believes the situation will not improve until next year.

Export markets were especially flat, with 46% of those surveyed less optimistic about future prospects and 47% reporting thin order books. Only 11% expected export orders to recover this quarter.

Domestic order books remained below normal for 59%, although there was a rise from 9% in the last quarter to 22% who thought domestic orders would pick-up in the current quarter.

Only 29% thought the UK should join the euro now, a 9% fall from the last quarter, while there was a 7% rise to 10% in those electing to never join.

The three months to 30 September were surveyed.