These figures confirm the picture of a manufacturing sector facing pressures from all sides.

The non-manufacturing ISM was strong across the board. There was only a modest drop in the prices paid index and most of the indices related to growth stayed quite strong -- taken together with the ISM factory report on Tuesday it suggests the U.S. economy stayed quite solid in October.

Strongest growth has been in business with private individuals, partly by increased borrowing for house purchases and increased interest in savings products.

We've seen over £50billion of additional business tax since 1997 and the share of Government spending has continued to ratchet upwards.

With some notable exceptions, manufacturers continue to experience difficult times, with high energy costs continuing to add pressure to profit margins.

Output has not been increasing as much because of the higher costs of production. Investment is also weak.