CONFIDENCE among South East firms has dropped by more than half in the last month as businesses lost their optimism about the economy.

That’s according to our latest business barometer.

It’s disappointing to see overall confidence across the South East take such a fall this month in the face of increasing uncertainty.

But the fact that firms’ confidence in their own prospects hasn’t slipped back quite so far, and remains one of the highest in the UK, shows that, while cautious, they remain resilient.

The hope now is that a busy festive period might unlock some consumers’ reluctance to spend, while any greater certainty businesses might get during that period will give them the confidence to invest.

Overall confidence fell 16 points to 14 per cent in October, driven by a dip in optimism about the economy, which fell 22 points.

A net balance of three per cent of companies said they are pessimistic about the outlook for the economy, compared with last month when a net balance of 19 per cent said they were optimistic.

Companies’ hiring intentions showed a net balance of 18 per cent of businesses in the region expect to hire more staff during the next year, down six points on last month.

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

Phillip Kirk is the regional director for the South East at Lloyds Bank Commercial Banking