General insurance companies cut jobs at the fastest rate for more than six years during the first quarter of 2003, according to a CBI report.
The report, carried out in association with Pricewaterhouse Coopers, found that 43% of businesses surveyed cut staff in the first three months of the year.
55% of companies said they were less optimistic than they were three months ago. The report blamed declining business revenues and global tensions for the decline in optimism.
CBI chief economist Ian McCafferty said: "The drop in business confidence has been dramatic, even though the fall in business activity was no worse than in the previous quarter.
"Short-term uncertainties are an important factor but widespread concerns about demand over the year ahead indicate that companies are also worried about more fundamental weakness."
