British businesses think the gloom hanging over their prospects will persist in the coming months, according to an industry survey published on Sunday.

The Confederation of British Industry's (CBI) gauge of private sector growth in the three months to October rose to -15 from -19 in the three months to September, still in contraction territory.

For the next three months, services and distribution companies expect a further downturn, although manufacturers were more optimistic.

"Notwithstanding a mixed picture across sectors, the private sector continues to face considerable headwinds," said Alpesh Paleja, CBI lead economist.

"Amid rising costs, labour shortages and demand waning, businesses foresee a continued fall in activity over the next three months."

Paleja said it was vital that new Prime Minister Rishi Sunak restores stability to the economic environment in order to snap companies out of their malaise.

The CBI survey was based on responses from 624 companies, surveyed between Sept. 26 and Oct. 13.

(Reporting by Andy Bruce; Editing by Alistair Smout)