Confidence in the UK sector is down 4% from the level it was in February 2022.

However there is growing hope that better times are around the corner witnessed by confidence climbing 14% in February compared to January.

Confidence in UK economic growth is still 37% lower than it was before Russian invaded Ukraine, but it has jumped 118% compared to a low in September 2022, immediately after the disasterous Trussenomics mini-budget.

Susannah Streeter, head of money and markets, Hargreaves Lansdown, said: "A year on from the devastating invasion of Ukraine, which shocked the world, sparked runaway inflation, and led to turbulence across global markets, investor confidence is still struggling to fully recover."

She said Russian aggression set off a chain reaction, sending commodity prices soaring as supply chains suffered fresh dislocation.

As food, raw materials and energy costs jumped, workers clamoured for higher wages, pushing inflation even higher, forcing central banks to hike interest rates, squeezing budgets further.

Ms Streeter said: “A year on after the FTSE 100 dropped 3.9%, it’s now hovering close to record levels. But the forces pushing it upwards are defensive in nature, with investors largely seeking safety, security and steadier income, rather than seeking out stocks with high growth potential.”

She said that confidence has rebounded as investors eye up China’s reopening, which has helped commodity stocks amid expectations that demand will recover.

Meanwhile fears that a long deep recession could be sparked by the crisis have receded, with confidence in UK economic growth jumping 43% in February compared to January.

She said: “Financial stability has been restored since the Trussenomics mini-budget was unleashed prompting market mayhem and given that we appear to be past the peak of inflation, there is growing hope that better times are around the corner.”

Each month Hargreaves Lansdown sends the investors’ confidence survey to 6,000 random clients plus any clients who have asked to participate in the survey again. It is sent on the first working day of the month and there is a representative split of clients by age. On average around 10% of clients respond.