Bosses are becoming more pessimistic about their companies’ prospects and are planning to reduce investment.
The Institute of Directors said its gauge of members’ optimism in the UK economy remained at a “very low” level last month as worries about inflation, Britain’s trade ties with Europe and uncertainty at the top of the government hit sentiment.
Its directors’ economic confidence index stood at -54, up only marginally from -60 in June, its lowest reading since the early months of the pandemic in 2020.
The index’s measure of directors’ sentiment about their companies’ prospects fell to a positive 19 in July, down from 23 a month earlier and 30 in May.
Directors’ investment intentions are also at their weakest level since October 2020, with the same proportion of businesses planning to cut back as those that are aiming to increase.
