The latest BDO Output Index, which monitors the growth expectations of a wide range of businesses over the next three months, fell from 103.8 in August to 103.3 in September.

Although this decline is described by the business consultancy as “modest”, the sub-index for manufacturers fell more steeply — from 113.2 to 111.6. This is the largest fall since May 2013.

BDO said that, although this reading is still “well above” the 100 mark that indicates growth, the findings suggest that “a number of factors are undermining orders”, including a decline in business optimism with regard to the euro-zone, an “uncertain” US recovery and “geo-political concerns”.

BDO partner Tim Entwistle said: “With global conditions becoming increasingly challenging, it was only a matter of time before the stellar increases in economic growth recorded earlier this year came to an end. Given their reliance on exports, manufacturers have borne the brunt of weakening global demand, but the effects of stuttering world-wide growth are obvious throughout the economy.”