The CBI has called on the Government to use the Budget to boost manufacturing activity after its industrial trends survey showed growth slowing in the sector.

CBI Chief Economist Rain Newton-Smith said that the Government should use next month's budget "to provide a fillip for factories through business rate reforms" to boost investment growth.

Elsewhere, the FTSE 100 has eked into positive territory this afternoon thanks in large part to engineer GKN's 5.1pc rally on speculation that it its two main divisions - automotive and aerospace - will split.

On the FTSE 250, Spire Healthcare has soared 15pc after management rejected a takeover attempt by top shareholder Mediclinic.

Meanwhile, the prospect of Mediclinic having to shell out more cash in attempt to persuade Spire shareholders sent the FTSE 100 firm sinking to the bottom of the blue-chip index.

On the currency markets, sterling has taken advantage of the euro's Catalonia crisis-related weakness to advance 0.4pc against the currency while against the dollar, the pound has pared early losses to nudge up 0.1pc to $1.32.