Business leader optimism in UK economy rises to highest level in three years

04 Jun 2024

Confidence in UK economic prospects amongst business leaders has risen to its highest level in three years, according to research published by the Institute of Directors (IoD).

The IoD's Directors' Economic Confidence index, which measures business leader optimism in regard to the UK economy, rose to -3 in May from -10 in April. This represented the highest level the index has reached since September 2021.

UK economic conditions and skills shortages are amongst the most important issues for UK business leaders, the IoD found. 35% of leaders are also concerned about the cost of energy, whilst 33% highlighted compliance with government regulation as being a worry for their firm.

Roger Barker, Director of Policy at the IoD, said: 'The confidence of business leaders in UK economic prospects has reached its highest level for three years, which is a welcome fillip for the business community.

'The data still doesn't suggest that business leaders are 'optimistic' about growth prospects. Rather, their sentiment has moved into a 'neutral' phase after having been relatively pessimistic for much of last year.'