UK directors see economic doom and gloom, according to IoD
Business leaders increasingly concerned about the economy, with Brexit negotiations a major concern according to new research from the Institute of Directors
There was some optimism earlier in the year, following the progress made on phase one of Brexit negotiations in December. However the IoD’s Confidence Tracker shows that since April net confidence has fallen 19 percentage points back into the red.
The data showed that firms’ expectations for future investment and employment remained subdued, while a majority of directors anticipated rising costs for the year ahead. After the UK’s general economic conditions, uncertainty around trade with the EU was the biggest concern of business leaders, having fallen out of the top three earlier in the year.
Nick Felton SVP MHR Analytics said, “These findings reinforce a clear pattern of business confidence being shaken by uncertainties over Brexit and wider market turmoil. With research suggesting that around 93 per cent of UK businesses are anticipating a drop in revenue next year, it’s high time that decision-makers started working on scenario modelling to look at different outcomes, depending on the performance of the economy.”
Felton continued, “As part of this approach, business leaders need to look again at IT investment and introduce analytics to improve decision-making whilst reducing administration. With 2019 set to be a year of uncertainty for many organisations, those that improve critical operations such as planning, reporting and forecasting processes will thrive, those that fail to do so could struggle to survive.”
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