FXstreet.com (Barcelona) - British manufacturers' outlook in economy and in business prospects has turned somewhat gloomier in the third quarter of 2007 on the back of the credit crunch, declining to its lowest level in the last seven quarters, according to the latest Industrial Trends survey by the Confederation of British Industry.

A balance of 13% of the surveyed firms are less optimistic on business than three months ago, the lowest level since the 14% reported in January 2006.

Demand levels, however, have remained healthy with 27% of the firms reporting an increase on the orders, while 18% reported losses, which gives a balance of +9%, wile export orders remain at a healthy +6% balance of firms reporting growth. On the negative side, manufacturing output increased at a balance of 1% which means the slowest pace since last October.