Business confidence in the UK has fallen to its lowest level since 1992, according to data published by Lloyds TSB.

The bank's bi-annual Business Confidence Index shows that confidence is at the lowest level in 16 years, and that the number of businesses expecting a decline in sales and orders exceeds those who expect their firms business to improve.

The research of 4,000 firms showed that since July last year 43% experienced a decline in business, and only 26% reported an increase in sales.

"British businesses have had a rough ride in recent months. With demand on a downward spiral, it's small wonder that confidence is at such a low ebb," said John Maltby of Lloyds.