BUSINESS confidence in the South East fell during February to 13 per cent and remains the lowest in the UK.

That’s according to the Business Barometer from Lloyds Bank Commercial Banking.

Companies across the region report lower confidence in their business prospects at 17 per cent and lower economic optimism at nine per cent.

Together, this gives an overall confidence of 13 per cent which is ten points below last month’s figure of 23 per cent.

While companies’ hiring intentions show a net balance of 18 per cent of businesses in the region still expect to hire more staff during the next year, this is down on last month.

Across the region, a net balance of 18 per cent of businesses feel that the UK’s exit from the European Union is having a negative impact on their expectations for business activity, down one point on a month ago.

Nationally, overall confidence fell one point to 32 per cent, driven by a dip in firms’ business optimism.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Mark Burton, regional director for the South East at Lloyds Bank Commercial Banking, said: “Companies across the South East are struggling to stay optimistic about their own future performance and the economy as a whole.

“Uncertainty over our withdrawal from the EU may be playing a role and firms in the region are sceptical about the outcome.

“But while confidence is falling, most businesses still expect to invest in new staff.”