IoD says confidence is on the up

A POLL of more than 1,000 business leaders released today brings good news on the economy.
Nearly two-thirds (62%) of Institute of Directors’ members think that the outlook for the UK economy is now brighter than at any stage since the financial crisis of 2008.
Directors are also feeling more confident about the performance of their company over the coming year, with the majority (59%) saying they have high confidence.
On a confidence scale of one to 10, the average rating for the next 12 months was 6.7, up from 6.3 in the first quarter of 2013, but still only showing a medium level of confidence.
There was also good news on business investment. The proportion of business leaders expecting their investment to be higher in 2013 than 2012 exceeds those expecting it to be lower by 23%.
However, IoD members’ confidence does not extend into 2014, when 39% of members expect the economy to grow less than the 1.8% forecast by the Office for Budget Responsibility.
IoD chief economist Graeme Leach said: “Just as the weather gets hotter the economy seems to be warming up as well. Business leaders clearly believe that the UK economic outlook is improving and they are even more optimistic about the outlook for their own companies.”
Regional director Darrell Matthews, pictured, added: “Members in the North West have lacked confidence in the economy for several years, so this survey is really encouraging.
“The IoD will continue to work with banks and other groups to ensure that there is a flow of funding to support this optimism and lead to sustained growth. Our main trading area, the euro zone, has settled down somewhat in recent months and this may well havecontributed to the brighter outlook among members.”
The survey also questioned business leaders on the Government’s fiscal plans. On deficit reduction, the majority (54%) feel the government’s current approach is correct. Where there is criticism, it comes mainly from those who think that the government should be doing more to reduce the deficit (29%).
Seventy-four per cent of members support the decisions announced at the recent spending review, with 84% endorsing the 1% cap on pay rises for public sector workers. However, more than half (56%) think that the government is not investing enough in key infrastructure.
Members highlighted roads, airports and railways as priorities for investment.