The Current Business Conditions Index plunged by nearly 40-points in the third quarter.
The index is one of several measured by the Jamaica Chamber of Commerce and reflected in their periodic Survey of Business and Consumer Confidence.
Researchers polled 100 businesses of various sizes and 600 households between July and September this year.
The survey found that there were declines across almost all indices.
Most notably, Business Conditions in the third quarter, plunged from record highs in the first and second quarter this year.
This indicates that businesses do not have a favourable perception of the current business conditions.
However, as researcher Don Anderson explains, business operators remain optimistic about the future.
Mr. Anderson says while consumer confidence has retreated, businesses seem to think the economy is on the right track.
And Mr. Anderson says the looming election may be having an impact on business and consumer confidence.