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The phrase "loss of confidence" is correct and usable in written English.
It is frequently used to describe when someone has less faith or assurance in themselves. For example, "The loss of confidence in her ability hampered her productivity."
Exact(59)
But Europeans exhibit little loss of confidence.
"There is a loss of confidence in corporate America".
Switzerland can ill afford a loss of confidence.
They have suffered a loss of confidence too, Jung suggests.
They suddenly feel deskilled and suffer a loss of confidence.
But this was just as acute a loss of confidence.
The risk of market loss of confidence is so substantial.
European banks might suffer a fatal loss of confidence.
But a loss of confidence would not be easily reversed.
For this loss of confidence, blame the pretence.
Similar(1)
It reflects a loss of confidence in public service as an end in itself.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com