According to a new survey by EEF manufacturers' association has found that the overall manufacturing output in the UK is at its lowest level since the end of 2009.

The manufacturers in the UK are facing a difficult business environment as the prolonged European debt crisis continues to impact the sector and confidence level declines. The survey by the Engineering Employers' Federation, which included about 400 firms in the UK, found that the order books in the UK fell for the first time since 2009.

EEF expects the manufacturing sector to fall 1.5 per cent this year. The sector accounts for around 12 per cent of the overall economy and the fall could have a major impact on the economic growth in the country during the year.

Both CBI and the British Chambers of Commerce have reduced their forecast for the economic growth in the UK and not expect the country's economy to contract this year. The Office for Budget Responsibility of the UK might also reduce its forecast of 0.8 per cent growth for the country.

Lee Hopley, the EEF's chief economist, said, "The weaker global outlook precipitated by the ongoing economic challenges in Europe has clearly hit home in our latest survey. Pockets of growth still remain in some sectors, but overall confidence appears to be draining away."

He also said that the fall in export during the previous quarter is a major area of concern for UK manufacturers as the economy is dependent on exports.