Manufacturers in Bradford are bracing themselves for more job losses and reduced orders - according to the district's latest economic survey.
The Chamber of Commerce's quarterly review for July to September discovered only a quarter of manufacturing firms were working to full capacity.
One-in-three manufacturers had shed jobs or cut hours.
And more than half the manufacturing companies polled, suffered falls in exports.
The report, drawn up from a survey of 285 Bradford firms, unearthed a growing gap between the fortunes of manufacturing and non-manufacturing companies.
John Lambert, director general of the Confederation of British Wool Textiles, said the findings mirrored the pessimism felt by Bradford's textile firms.
He said: "The textile industry was among the first to be hit by the strong pound and we have been suffering for 18 months.
"Mercifully there have been few company closures but most companies have made redundancies and short-term working is widespread."
Chamber of Commerce policy executive Carole King said Bradford had been hard hit because of its large export-based manufacturing sector - which employs about a quarter of the district's workforce.
But she predicted an upturn in confidence in the year's final quarter due to reductions in interest rates.
"It's gloomy but the next survey will really show how businesses are feeling.
"The picture at the moment is similar to last year but last year people believed things would soon get better.
"Since the survey has been made there have been two successive reductions in interest rates."
The survey found 46 per cent of manufacturing firms predicted a fall in turnover and profits - compared to 52 per cent of firms in the non-manufacturing sector which expected an improvement.
Only 32 per cent of manufacturers were looking to recruit staff.
Chairman of Bradford Council's regeneration committee Councillor Dave Green said the Council was aware of pressures faced by the manufacturing sector was working with firms to help them secure outside funding and make use of technology.
He said: "Textiles especially have been severely hit and we have been working with trade unions and employers to try to develop local strategies.
"But it could be that since the summer some firms which were teetering on the brink have unfortunately gone under."
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