Survey: UK business leaders have become more pessimistic about the economy

(1) British business leaders have become more pessimistic about the outlook for the UK economy and are delaying investment decisions, according to a survey released on Wednesday. (2) The Institute of Directors’ confidence index fell from minus 21 in November to minus 28 in December, and has gradually risen since June. The index reflects the gap between business leaders who are optimistic and pessimistic about the economy. Expectations for business investments, costs and salaries, and headcount have all changed little. (3) Despite the cautious attitude, the company’s leaders are more optimistic about their business prospects and have stronger hopes for revenue and export growth. (4) Roger Barker, policy director of the Institute of Corporate Directors, said that the sentiment of company executives in the second half of 2023 was mostly lower due to the impact of Intrerest Rate hikes on the economy. (5) “While all aspects of business conditions have improved over the past few months, particularly in terms of inflation, this has yet to have a meaningful impact on business decisions,” Barker said. ” (6) The Institute of Corporate Directors has called on the Central Bank of England to start cutting interest rates in early 2024. “As inflationary pressures wane, businesses are in dire need of a boost to potentially help drive meaningful economic growth in 2024,” Walker said. ” (7) The ACD’s survey is based on responses from 703 surveyed companies between December 14 and December 29