The threat of recession has battered the business confidence of private companies in Europe, according a new survey from 3i, the global private equity house.

The survey of a sample of 3i-backed companies found that confidence in the business, political and economic climate of Europe has hit a three-year low, following the economic downturn in the US. The firms were surveyed before the September 11 attacks in the US, which has created additional uncertainty in the market place.