Business confidence rises for the fifth consecutive month

10 May 2023

Optimism amongst UK business leaders over prospects for the UK economy rose for the fifth consecutive month in April, according to a survey conducted by the Institute of Directors (IoD).

The IoD Directors' Economic Confidence Index rose to -5 in April 2023, up from -13 the previous month.

However, the survey also showed that inflation expectations remain high. Only a quarter of respondents said that they believed inflation had already peaked, down from 28% in March.

There was a corresponding slight rise in the proportion of business leaders who thought inflation would either peak in the Summer or Autumn of this year, up from 30% to 33% between March and April.

Kitty Ussher, Chief Economist at the IoD, said: 'Business confidence in the UK economy is much improved compared to the end of last year and continues to strengthen, despite business leaders also expecting high inflation to persist.

'It is particularly reassuring to see a recovery in investment intentions, raising the hope that the economic fundamentals can continue to improve in the months ahead.'