01 January 2018

Business leaders have said they have confidence in their own firms for the year ahead, even though there are continued concerns about the wider economy, according to a survey from the Institute of Directors.

The survey of 762 company directors showed that in December, almost half of businesses were ‘quite’ or ‘very ’optimistic about their prospects, but a similar number said they felt pessimistic when asked about the wider economy and cited domestic economic conditions as the main negative factor affecting their business. Some four in 10 said uncertainty surrounding the UK’s trading status with the EU and skills shortages were having a detrimental effect. In terms of their wishlists for 2018, respondents called for investment in physical and digital infrastructure and for a reduction in the regulatory burden. More than a third of IoD members said they wanted to see funding to improve transport infrastructure, followed by better coverage of faster broadband.

Stephen Martin, the IoD’s director general, said: “The concern in these figures is the prevailing low expectations for the performance of the economy as a whole. Domestic economic conditions and uncertainty around our trading relationship with the EU continue to top our members’ concerns. The Government must now build on the resilience of business leaders. It can help to bolster confidence by hitting the ground running in January, pushing ahead with the priorities spelled out in its Industrial Strategy in areas like transport and skills.

“It is also absolutely vital that quick progress is made in agreeing transitional arrangements with the EU for what comes after March 2019. Businesses need to plan ahead, so the Government must deliver greater certainty on the Brexit transition early in the new year.”

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Tags: 2018, business, optimistic