Demand for UK manufactured goods declined at the fastest rate in thirty years in the last quarter, according to research by the Confederation of British Industry (CBI).

In the first three months of 2008 demand plummeted, with 60% of firms reporting a fall in the volume of new orders compared with the previous quarter and only 13% reporting an increase.

While general business sentiment continued to fall this quarter, it did so at a considerably slower rate than in the previous three months (a balance of -40% compared with -64%). This is the first time in 21 months that the rate of decline has slowed.

"The first quarter of 2009 was extremely tough for UK manufacturers but this survey shows firms hope that the worst may be behind them, with the pace of decline slowing slightly," said Ian McCafferty, the CBI's Chief Economic Adviser.