The UK manufacturing companies are more pessimistic than in the past three years, as orders are declining at the fastest pace since the financial crisis a decade ago, shows the data from the Confederation of British Industry (CBI).

The gloomy data is yet another proof that the economy suffered in the last quarter after new orders were concentrated at the beginning of the year. The reason for this is the initial date announced by the UK for leaving the European Union, March 29.

Meanwhile, the fears of Hard Brexit are growing. The new British Prime Minister Boris Johnson promised the UK to leave the European Union on October 31 with or without a deal.

The CBI indices, tracking both domestic and foreign orders, reached their lowest levels in the three months to July. Optimism has fallen to its lowest levels since 2016 when the Brexit referendum was held.

Productivity has also declined, although the decline is partly due to the temporary closure of plants around the initial date for Brexit, with expectations for moderate recovery over the next three months.

The employment has fallen and inflationary pressures are lower, according to survey data among 300 firms between June 25 and July 15.

Gross domestic product may have shrunk for the first time in seven years in the second quarter, and the National Institute of Economic and Social Research warned on Monday that the economy may be already in a technical recession. The outlook for exports is affected by the tensions of the trade front and the slowdown in global growth.