The Confederation of British Industry has called for a half-point cut in interest rates to prevent further sharp falls in exports, output and employment. The business leaders group made its call as it published the gloomy results of their quarterly trends survey.

The survey is the first to have received responses after the September 11 attacks, and shows business confidence at a three-year low, the worst export expectations since July 1980 and the fastest expected fall in domestic orders since January 1991.