The gloomy business sentiment was despite several relatively positive economic indicators after the Brexit vote

Confidence among small businesses is at a four-year low because of concerns among companies that the economy will weaken as Britain prepares to leave the European Union.

A survey by the Federation of Small Businesses has revealed that confidence has fallen for the third consecutive quarter. Those who are pessimistic about their prospects outweighed those feeling optimistic for the first time since 2012. The lobby group described the study as a wake-up call for politicians to act to “avoid an economic slowdown”.

The gloomy sentiment came despite several relatively positive economic indicators in the wake of June’s vote.

The FSB said that companies had reported “many immediate economic conditions improving”, with businesses enjoying greater access to finance and a rise in new employment. The share