UK Bosses say UK economy is slowing according to IoD survey

The latest quarterly Business Opinion Survey from the Institute of Directors (IoD) shows a marked deterioration in the optimism and performance of UK PLC. The survey suggests the UK economy is now at a turning point.

The balance of those directors more, rather than less, optimistic about their company’s prospects, slipped to 31% in the latest survey from 40% previously. While the balance of those reporting their company performing well, versus those stating it is performing badly, slipped to 67% from 72% previously.

Graeme Leach, Chief Economist at the IoD, said:

“It’s too early to be certain, but our latest Business Opinion Survey does suggest the UK economy is now at a turning point. Our members seem to be signalling that this is as good as it gets in the current economic cycle.

"Company optimism and performance have declined, but they remain relatively high compared with recent years. The upshot is, the UK economy faces a slowdown, but not a downturn. "

Business investment is also expected to slow. The investment intentions balance fell to 17% in the latest survey, from 27% previously. Investment intentions have fallen back to the levels seen a year ago.