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Confidence amongst business leaders 'remains low'

April 04 2025

Optimism in regard to the UK economy amongst business leaders rose slightly to -58 in March 2025 from -64 in February, the Institute of Directors (IoD) recently found, but still 'remains low'.

Confidence in business leaders' own organisations also increased to +5 from +2 in February.

The IoD found that the biggest concerns among business leaders were labour costs, supply chain inflation and energy costs.

Anna Leach, Chief Economist at the IoD, said: 'The confidence of business leaders across the UK remained depressed in March, with this month's improvement still leaving the index around Covid pandemic lows. With the NICs and minimum wage increases now coming into effect, headcount and investment intentions remain well below the average of the last decade, albeit a little higher than they were.

'And business leaders are highly concerned about costs – with three quarters saying that employment costs are the biggest cost driver they face.'

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