Business leaders remain cautious on the outlook for the year ahead

Business leader optimism rose slightly in December but remains at a low point, according to the Institute of Directors' (IoD) latest Economic Confidence Index.

06 Jan 2025

Business leader optimism rose slightly in December but remains at a low point, according to the Institute of Directors' (IoD) latest Economic Confidence Index.

The index, which measures business leader optimism in prospects for the UK economy, crept up to -61 in December 2024 from -65 in November.

This nonetheless represents the fourth lowest reading of the index since its introduction in July 2016.

Business leader confidence in their own organisations also rose to +8 in December, from -7 in November. However, this is still the second lowest reading of this indicator since June 2020.

Anna Leach, Chief Economist at the IoD, said: 'It is welcome to hear of government commitments to stable and long-term policy making that facilitates business planning and investment.

'But it takes more than stability to deliver growth and government rhetoric on investment is increasingly out-of-step with business reality.

'Our data shows that business leaders are proceeding with investment in areas such as technology, workforce training and R&D, motivated by desires to increase efficiency, launch new products and services, and expand their businesses.

'The government must move swiftly to deliver a policy environment in the UK that strengthens investment, with Industrial Strategy, ten-year infrastructure plans and planning reform presenting material opportunities.'

Register for newsletter

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Learn more
BAS logo Ciot logo ICAEW logo Sage logo

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help | © 2025 McIntosh Accountants Limited. All rights reserved.

McIntosh is a trading name of McIntosh Accountants Limited.

Registered Address: McIntosh Chartered Accountants incorporating Facts and Figures, Windsor Lodge, 263A Werrington Road, Bucknall, Stoke-on-Trent, Staffordshire ST2 9AS
Registered in England | Company number : 04639062

We use cookies on this website, you can find more information about cookies here.