Manufacturing companies recorded their lowest investment level in 20 years during the third quarter, according to official figures.

The Office for National Statistics also found spending in the retail sector was down, pointing to a bleak economic outlook.

Experts warned part of the problem was firms using improved revenues to make up pensions shortfalls rather than investing.

And a report by Aon Consulting found workers' dissatisfaction is growing following a fall in employee loyalty for the fourth year in a row.