UK directors caught in wave of optimism

UK
business directors are at their most optimistic for two years despite weaker
profits and falling performance levels, according to the results of a new
survey.

The
Institute of Directors’ Business Opinion Survey shows a sharp increase in
optimism during the first quarter of 2002, despite slipping company performance,
falling profits and lower capacity utilisation.

However,
all the forward indicators have improved, particularly in terms of export
orders and predicted profits.

The
IoD attributes some of the improvement to better economic conditions.

Ruth
Lea, head of the policy unit at IoD said GDP should grow by around 2 per cent
this year and predicted that both the private and public sectors are set to
recover.

"Our
latest survey suggests the economy is recovering despite some weaker numbers
for company performance," she said.

www.iod.com

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