Small and medium-sized businesses in the British construction sector are losing confidence in the economy, according to a survey covering the second quarter of this year.
Research carried out for the Tenon Forum, a think tank made up of companies in the UK's SME sector, found that 58% of small firms in the construction sector believe that economic uncertainty is preventing them from meeting their business objectives. This compares with a figure of 44% for the first quarter of this year.

Alan Newton, chairman of the Tenon Forum, said: "Small and medium-sized businesses employ some 12.5 million people in the UK and generate an estimated £400bn of GDP. They are the engine of our economy and if they are losing confidence, the government has to take note."

The findings call into question chancellor Gordon Brown's budget forecasts of a recovery next year.