A new survey has found that business leaders' confidence in the economy has dropped by 31% in the last year.
The Institute of Directors says uncertainty over Brexit continues to impact on the economic forecast.
92% of directors surveyed believe Brexit will cause problems in the short term while 58% feel it could cause long-term trouble.
Maura Quinn, CEO of the Institute of Directors, says business leaders are unable to plan beyond Brexit.
"Overall business confidence is really plummeting," said Ms Quinn.
"We've obviously been through a considerable period of uncertainty which still continues on an hourly basis.
The new survey also shows 56% of company directors believe lack of housing is impacting their ability to attract new talent.
There has also been a drop in the level of business preparedness for Brexit, down from 71% to 67%.
Ms Quinn thinks that decrease may be due to the numerous extensions to the Brexit deadline.
"To some degree there may have been an element of people believing that this would be resolved by now," said Ms Quinn.
"There may be an element that people thought that they didn't need to prepare.
"That is where we are at now and we are seeing an increased focus again on preparedness so I think that is probably why we are seeing some fall off."