Uncertainty caused by the forthcoming general election is affecting business confidence.

According to the latest quarterly economic survey conducted by Sussex Enterprise, half of firms (51%) believe turnover will improve during the next 12 months.

This is down from 57% the previous quarter.

Questions in the Quarterly Economic Survey covered a range of subjects, including confidence, profitability, cash flow and employment.

The main findings from the survey show 36% of companies believe their profitability will improve during the next 12 months, marginally lower than the previous quarter’s result of 42%.

A total of 64% of businesses say their workforce will remain the same during the next three months – slightly lower than the last quarter, at 69% – while 22% expect to expand and 14% expect to make cuts.

Sussex Enterprise member Yvette Beckett is managing director of Uckfield-based My Marketing, a telemarketing company whose clients include SMEs and large Plcs.

She said: “Up to the end of December we were busy and we had positive feelings coming into the new year.

“However, it suddenly went flat and it has only been in the past few weeks that people are becoming more positive.

“As much as everyone is saying they feel more comfortable about the climate, they are not prepared to commit. It’s to do with the general election. What party will come into power and what impact will it have on the business community?”

Paul Scullion, corporate finance director at Spofforths accountants, which has offices across Sussex, said: “Although few believe we’re out of the woods, I feel there is a glimmer of hope on the horizon.

“Firms should start making plans to take advantage of the recovery, addressing opportunities and challenges they face.”

Mark Froud, chief executive of Sussex Enterprise, said the results of the survey showed the economy was heading for a “slow, steady recovery, with still a long way to go”.