According to Lloyds TSB, a double whammy of manufacturing job losses and rising insolvencies has led to a sharp loss of business confidence in the UK this month, down from 56pc to 37pc.

Following the closure of Peugeot’s car plant in Coventry, it’s in the West Midlands that pessimism is most marked. Retail sales numbers from the Confederation of British Industry tomorrow are expected to reinforce the gloomy outlook.

Trevor Williams, Lloyds’ Chief Economist, says he expects a bounce-back next month: “Exports prospects are significantly brighter and investment spending is beginning to rise.”