Soaring oil prices have had an adverse effect on business confidence, a new study has indicated.
In its monthly Business Barometer index, Lloyds TSB found that firms grew less positive about the economy for the second month in a row in June.
Results showed that 62 per cent of companies were more pessimistic, compared to 22 per cent which expressed optimism about current financial conditions.
However, the bank noted that many were still confident about prospects in their own sector.
Trevor Williams, chief economist, Lloyds TSB Corporate Markets, said: "Month on month business confidence in the economy is waning, but so far these worries have not shaken the faith most firms have in their own trading prospects."
He attributed the pessimism in large part to the dramatic rises in the price of oil seen in recent months, although he did say there are late indications that this is beginning to come down.
to another study conducted by the group found that companies' profits have declined significantly in the past six months, which has brought business confidence down.
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