Confidence in the state of the UK economy plunged last month, a survey revealed today.
The percentage of firms feeling optimistic about the economy dropped from 56 per cent in April to 37 per cent in May, according to the Lloyds TSB Financial Markets Business Barometer.
However, in terms of firms' own prospects the situation is not so bleak: Some 55 per cent of firms surveyed expect their own level of business activity to increase over the next year, with just 8 per cent expecting a decline.
The downturn in sentiment is expected to be temporary as other data points to a rise in manufacturing output since the beginning of the year.