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Personnel Today

UK directors caught in wave of optimism

by Personnel Today 23 Apr 2002
by Personnel Today 23 Apr 2002

UK business leaders are at their most optimistic for two years despite
weaker profits and falling performance levels, according to research for the
Institute of Directors.

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

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

The study finds that the manufacturing industry continued to underperform
the general economy, but the gap is closing.

Ruth Lea, head of the policy unit at IoD, predicts that GDP should grow by
around 2 per cent this year and the private and public sectors are set for
recovery.

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"The improvement in export orders is encouraging as is the sign that
manufacturing may be picking up after what has been a nasty recession,"
she said.

The IoD warned employers to expect a hike in interest rates before the end
of June because of the healthier economic outlook and steady rises in house
prices.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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