Some might have hoped for a patriotic rally in the stock market after Saturday's amazing 5-1 defeat of Germany by England. But any football-related euphoria was quickly undermined by some grim economic news.

The FTSE 100 index tested the bottom of its recent trading range, falling 66.8 to 5278.2 at its worst level of the day.

A modest recovery towards the end of trading still left the blue-chip benchmark down 32.9 at 5,312.1. The market weakness was broadly based with the FTSE 250 off 33.6 at 6,082.7, the SmallCap 15.5 lower at 2,686.7 and the Techmark 100 4.9 fell to an all-time low of 1,443.25.

There was disappointment in the form of the purchasing manager's survey of the manufacturing sector, which showed a fall from July's 47.0 to 46.4. Any figure below 50 indicates a contraction in activity. The survey was weaker-than-expected and the index hit its lowest level since early 1999; in contrast there was a rebound in the euro-zone manufacturing survey.

"This survey continues the pattern whereby UK manufacturing is lagging the euro area, reflecting the extra drag from the high pound on top of the global downturn in manufacturing," said Mr Michael Saunders, UK economist at Schroder Salomon Smith Barney. "Despite the continued weakness in manufacturing, we continue to doubt whether the monetary policy committee will cut rates at this week's meeting unless there is extreme weakness in the data due in the next few days."

Meanwhile a Confederation of British Industry survey appeared to show that the bad news was spreading to the services sector. There was a big fall in confidence among business and professional services firms.

At the individual corporate level, there was the normal round of profit warnings from the SmallCap sector, with Tadpole Technology, a former speculators' favourite, Whatman and IQ-Ludorum the latest groups to disappoint investors.

The main bright spot came in the FTSE 100, where Colt Telecom surged on a combination of bid speculation and the company's decision to buy back some of its bonds in the market.

Turnover was unsurprisingly low, given the US holiday, with 1.59 billion shares traded by 6 p.m.