Pessimism over the economic fortunes of UK business has taken a huge leap in the past year, according to figures from the Chartered Institute of Personnel and Development (CIPD).

Forty-one per cent of organisations quizzed said their economic situation had worsened in the past 12 months, a 33% increase from the figures recorded in the CIPD’s 2005 survey.

The public sector suffered worst, with a record 56% of respondents saying their prospects had worsened over the year. Only 11% thought their economic state had improved.

The results were not all bleak, as almost a fifth (19%) of those surveyed felt the situation had become stronger.

This was highest in the private sector at 22%, with 20% amongst voluntary organisations.