Data from the Economic Development Board (EDB) showed that 28 per cent of manufacturers expect business conditions to worsen in the next six months, compared to only 12 per cent in a similar poll three months ago.

Most manufacturers - 62 per cent - expect things to remain the same until March next year, while 10 per cent think conditions will improve.

Companies in the chemicals, precision engineering, electronics and biomedical sectors were the most pessimistic, said the EDB.

Services firms were similarly gloomy, with 30 per cent predicting less favourable conditions over the next six months, according to findings released by the Department of Statistics.

Sentiment was worst in financial services: 38 per cent of firms expect things to get worse, and only 17 per cent have a positive outlook.

But hotels and caterers are still surprisingly cheery, with half the companies in this sector projecting improved conditions over the next six months.