Business sentiment in 'relatively depressed place' as company chiefs eye rate cut

By Scott Reid
Published 3rd Jan 2024, 04:55 BST
Comment
In the coming months, the Bank of England, above, will be considering its next step in terms of interest rates.In the coming months, the Bank of England, above, will be considering its next step in terms of interest rates.
In the coming months, the Bank of England, above, will be considering its next step in terms of interest rates.
But IoD says many bosses remain optimistic about the prospects for their own organisations.

Business sentiment ended the year in a “relatively depressed place” having shown signs of a rebound since the spring, according to the Institute of Directors.

After gradually ticking up since its low point of -30 in June 2023, the IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, fell back to -28 in December from -21 in November. However, despite the decline in the headline indicator, leaders’ confidence in their own businesses rose to +36 in December, from +30 the month before.

Hide Ad
Hide Ad

In addition, both revenue and export expectations nudged higher in December. Net outlook for revenue for the next 12 months, compared to the previous 12 months, increased from +37 in November to +42 in December, while the net outlook for exports rose from +15 to +20.