business confidence in the south east has plummeted, according to a report released today.

In the third quarter of 2011, confidence in the Business sector has fallen by 13.5 points in the ICAEW/Grant Thornton UK Business Confidence Monitor.

That is the first fall in the region since 2009.

The most likely reasons are thought to be the eurozone crisis and the worsening global economic outlook.

On a positive note, firms in the South East report positive labour market conditions, with the average number of employees increasing by one per cent over the last 12 months.

Norman Armstrong, Partner at Grant Thornton in Southampton, said: “There are many positives to take from the underlying data on growth in revenues, profits and investment in the last 12 months.

"What's changed is the lack of visibility about future economic conditions and great uncertainty over the Eurozone crisis on trading through 2012. "As clearly spelt out in the Chancellor's Autumn Statement, revised and lower predictions for economic activity suggest that any substantive market growth is now beyond the normal business planning horizons and, against that backdrop, most business leaders are necessarily cautious.”