Business leaders say confidence is dropping among many of Kent's small firms - with a general expectation that things will get worse.

As European stock markets fell again this week amid worry over the strength of financial institutions, Andrew Aves, regional organiser for the Federation of Small Businesses in Kent and Medway said many firms were now experiencing a "progressive downward trend", although some had been affected more than others.

He said: "Increased bank charges have been an issue of concern and there is a general expectation that things will get worse.

"There is a dropping level of business confidence over the last 18 months and I would expect that to continue. We will know more when our poll of Kent's small businesses - our 'business barometer' - comes out in November."

He added: "Generally speaking it does seem that the situation is patchy, there is no across-the-board reduction in trade. One example is that in the construction industry the jobbing builders are doing quite well, while some that do subbing for major housebuilders are doing badly. It depends what your customer base is.

"Sound businesses with a certain amount of reserve are not having any real difficulty with cash flow. But those that have not been so diligent are finding things more difficult."

He urged small firms to pull together and swap experiences to get the county through the worsening financial crisis and invited them to a breakfast meeting at Maidstone's Russell Hotel on Thursday October 9.

Speakers at the event, entitled "Tougher Times" are Shirley Moore, head of debt recovery and insolvency for solicitors Brachers and Steve Tancock, head of the Maidstone office of financial consultancy Smith and Williamson.

Meanwhile the British Chambers of Commerce's quarterly economic survey said Britain is already in a recession, which is worsening, and could see unemployment up by 350,000 by next year.

The BCC said confidence has collapsed in both manufacturing and service sectors.

Strictly speaking the UK is not yet in a recession, as it is usually defined as two consecutive quarters of negative economic growth.

Anyone wishing to attend Thursday's FSB event can book by ringing 01622 688134.