The corporate market's business barometer found the percentage of firms feeling pessimistic about the economy soared from 28 per cent to 51 per cent, matching the worst ever survey outcome in December 2002.

The balance of firms feeling optimistic rather than pessimistic, plunged 33 per cent to –17 per cent during the last month of the year. Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: “Distribution sector firms are less confident about their own activity, a likely fall-out from their dependence on the UK market.”