THE prospect of Brexit is denting the confidence of West Midlands business, a report has found.

The Business Barometer Report from Lloyds Bank measures overall business confidence based on the trading prospects and the economic outlook of firms across the country.

It revealed that just two per cent of businesses in the West Midlands feel tthe UK's exit from the EU will having a positive impact on their business expectations.

The report also found that business confidence in the West Midlands dropped last month, making the region the third least confident region in the country.

The banking giant questioned 1,200 companies, including 100 based in the West Midlands, for their views.

The results highlight a pessimistic attitude among businesses, with overall business confidence dropping by 15 points from January to February.

Glen Wilson, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “Confidence in the region has slipped as we’ve moved into February, but is still largely in line with the UK average.

“The West Midlands is one of the manufacturing hubs in the UK and with the sector’s overall confidence up nine per cent in February, local firms still have a lot to be positive about in 2018.”

The West Midlands Combined Authority (WMCA), however, paints a more optimistic picture of the region's business prospects.

According to the WMCA Economic Review of 2017, the gross value added of the region; the measure of the value of goods and services produced in an area, industry or sector of the economy; has increased by 8.6 per cent since 2013- topping the UK's growth rate over the same period by 8 per cent.

Despite this growth, West Midlands Mayor, Andy Street, recently stressed his belief that the UK must continue to have access to the single market and customs union to protect the interests of West Midlands businesses.

Last month, Dudley North MP Ian Austin called on the Tory mayor to properly examine the impact that Brexit could have on the West Midlands, following a similar test carried out by Street's mayoral counterpart in London.

The Labour MP wants the Mayor to compile an impact report so that businesses in the region have a better idea of what Brexit will mean for them and how they can prepare.