Manufacturing in the UK is stuttering, as export orders slow due to the European crisis, a survey from the CBI has revealed.

Of the manufacturers questioned, 41 per cent said that their order books were below average, and production levels are expected to fall.

Export demand has also slowed, as 44 per cent said that export order books are below average. As a result, production will be reduced over the next three months.

Commenting, Ian McCafferty, chief economic adviser at the CBI said: "Conditions in the UK manufacturing sector remain difficult, with demand both at home and abroad subdued.

The weaker export performance no doubt reflects on-going instability in the Euro area, our biggest export market, and its knock-on impact on prospects for the real economy.

"A clear and orderly resolution to the crisis remains essential to prevent further adverse effects on both UK manufacturing and the wider economy, and to lift business confidence."