Business confidence in UK economy plunges to lowest level since December 2022

IoD’s economic confidence index

Business confidence in the UK economy has sunk to the lowest level since December 2022 in the lead up to Chancellor Rachel Reeves' first Autumn Budget on 30 October.

The Institute of Directors' economic confidence index, which measures business leaders' optimism about the prospects for the UK economy in the next 12 months, dropped to -38 in September, down from -12 a month prior. A similarly sharp decline came from business investment intentions, with a three-month consecutive drop from +24 in July to +10 in August and then -6 in September. The figure recorded last month was the lowest since September 2020 and the sharpest decline since the outset of the Covid-19 pandemic. UK economy expands by 0.6% in second quarter Meanwhile, business lead...