The Institute of Directors (IoD) has polled more than of its 1,200 members about the impact of the recession on their companies, revealing that more than half (52 per cent) expect that GDP will be lower in 2012 than it was last year, while 65 per cent believe that there is little to no chance that the UK will emerge from its slump before the end of December.
This lack of confidence in the nation’s economic growth prospects is reflected by the fact that 44 per cent respondents have postponed at least one investment or employment decision this year as a result of the economic uncertainty.
Over two-thirds (69 per cent) think that the government’s attempts to simplify the tax system has so far failed to achieve their aims, while 68 per cent believe that its efforts to streamline business regulation have also been unsatisfactory.
Graeme Leach, chief economist at the IoD, said: “Business is battening down the hatches in the expectation that the recession will continue for the rest of the year. That is bad news for the economy, because decisions to invest money or take on more staff are being postponed until things look up. Low confidence leads to delayed decisions. Delayed decisions further undermine confidence. It’s a vicious cycle.”
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