The UK's economy is sagging under the weight of "unrelenting uncertainty" amid a continued slump in manufacturing, according to the British Chambers of Commerce (BCC), report agencies.
A survey of 6,600 companies employing 1.2 million workers showed domestic and export sales fell in manufacturing, while services firms also reported a decrease in orders in the three months to September.
Suren Thiru, head of economics at the BCC, said the manufacturing sector is struggling to cope with diminishing cashflow, weakening global demand and disrupted supply chains.
He added: "Our findings point to a worrying drop-off in UK economic activity, with unrelenting uncertainty over Brexit and a notable slowing in global growth prospects dragging down almost all the key indicators in the quarter.
"A stuttering services sector coupled with a worrying downturn in manufacturing activity indicates that any bounce back in UK GDP growth from the contraction in the second quarter is likely to be underwhelming at best.
"Looking forward, weakening orders, confidence and investment intentions suggest that unless action is taken, the UK's current weak growth trajectory could drift markedly lower over the near term."
BCC director general Adam Marshall said the results from the survey amounted to "some of the worst figures we've seen in a decade" - with jobs, businesses and the future success of communities on the line. He added: "Behind each and every one of these statistics sit thousands of real businesses, who are feeling the cold harsh winds of Brexit uncertainty and global trade turbulence right now."
It comes after Thursday's figures from the IHS Markit/CIPS purchasing managers' index (PMI), showing that September saw a fall in GDP by 0.1%.
September's PMI reading of 49.5 - where the 50-mark separates expansion from contraction - adds to readings earlier this week suggesting manufacturing and construction sectors also shrank.
If confirmed by official figures published next month, it would mean the UK has suffered two consecutive quarters of contraction - the definition of a recession.
Meanwhile, small businesses are also feeling the pinch.
Two-thirds of 1,200 company owners told the Federation of Small Businesses they did not expect their situation to improve in the next three months. Almost half feared things would get worse - the highest figure for five years - with those trading overseas particularly pessimistic.
Fewer than one in seven employers are planning to hire new staff in the next few months.
FSB chairman Mike Cherry said the findings should be "an urgent wake-up call" for policymakers.
He added: "Even in the aftermath of the financial crash, we didn't see such a sustained string of negative confidence readings.
"Three years of political uncertainty and rising costs have stifled output and left small firms unable to plan, invest and grow.
"There's a real sense of exasperation among small firms. Big decisions - whether that be taking on new staff, purchasing machinery or embarking on sales in a new country - are being put on hold because we have no idea what our trading environment will look like in less than four weeks' time."
A government spokesman said: "We recognise the uncertainty that businesses have faced over the past three years. That is why we are leaving on 31 October preferably with a deal, but if we have to leave without a deal, we will be fully ready. "We have also made £108m available to ensure businesses can get ready and take advantage of future opportunities."
