Economic IndicatorsTop News

UK firms shelve investment and hiring plans in May, IoD says

imageEconomic Indicators14 hours ago (Jun 10, 2020 07:15PM ET)

(C) Reuters. Outbreak of the coronavirus disease (COVID-19) in London

LONDON (Reuters) – British company directors’ investment and hiring intentions sank to their lowest in more than three years last month, even as their broader confidence edged up slightly from a record low struck last month when COVID-19 restrictions were greatest.

The Institute of Directors said its monthly sentiment survey showed business leaders’ confidence in the economy rose to -60 in May from -67 in April, which was the lowest reading since the survey began in July 2016.

But both investment and hiring intentions sank to their lowest in the survey’s history.

“It’s too early to say we’ve turned the corner,” IoD chief economist Tej Parikh said. “Revenue isn’t expected to pick up, which means investment and hiring plans are very much on hold.”

The IoD figures are broadly in line with other business surveys which have shown a small pick-up in activity since April, when coronavirus restrictions were heaviest.

Official due data on Friday is likely to show economic output in April was more than a fifth lower than the year before, according to a Reuters poll of economist.

Restrictions on businesses in England are steadily being lifted, though for some sectors such as hospitality there is no clear timetable for when operations can return to normal.

The IoD said the government should give tax breaks and grants to companies that needed to revamp their business models.

UK firms shelve investment and hiring plans in May, IoD says

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button