Businesses fear the government’s austerity drive will have a devastating effect on industry.
According to the Travelex Confidence Index of 200 exporters, 63 per cent feel spending cuts and tax hikes will have a negative impact on British trade over the long term.
Respondents in the manufacturing sector are concerned that they will be hit hard by the fiscal squeeze, with more than half (53 per cent) saying the measures will have a detrimental effect on the sector.
Only 38 per cent of the total respondents now believe that a weak pound will lead to an export-driven recovery, compared to 53 per cent in June.
The decline in confidence comes despite the recent upbeat figures from the Travelex Confidence Index, where a strong GDP figure in the second quarter had helped to bolster faith in the economic recovery.
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