Business investment at a record 3 year low.
British company directors have confirmed that their investment and hiring intentions for May 2020 have dropped to their lowest in three years even as confidence has been increasing slightly since the easing of the Covid-19 restrictions.
The Institute of Directors (IoD) said that its monthly survey indicated that confidence in business leaders had rose from -67% in April to -60% in May which was the lowest result the survey has ever received since its inception in July 2016.
“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.”
These figures produced by the IoD are broadly inline with other business surveys which have shown small increases in activity since April 2020 when the coronavirus restrictions were at their toughest.
There is still however, uncertainty within the hospitality industry as there is no clear timetable outlined which specifies when they will be returning to normal, whilst the rest of businesses in England are starting to reopen.
The IoD have suggested that the government consider tax breaks and grants to companies that needed to re-plan their business models.