19 Sep 2016, 3:22 pm
The bank's 'confidence index' is based on a survey of companies' expected sales, orders and profits over the next six months. In July the overall index was 12%, down from 38% in January, Lloyds Bank said.
The service sector was particularly badly hit, with confidence falling by 30%. Confidence also fell in construction "though the level remains relatively high", Lloyds Bank said.
The most common concern was economic uncertainty, for 27% of respondents, followed by weaker UK demand, with 18%. Only 15% of companies anticipate growth in exports, compared to 20% in January, Lloyds Bank said.
The confidence index is based on a UK-wide measure, but Wales "bucked the trend", showing an improvement in confidence.
"The data also shows that confidence levels were below the national average in the south of England and Scotland, but above average in Wales, the Midlands and the North of England," Lloyds Bank said.
"The differences in sentiment may have been partly driven by the reaction to the outcome of the EU referendum result, with confidence levels the lowest in London and Scotland which voted for ‘Remain’," it said.