Optimism among company directors about future business prospects has been seemingly hit by the recent troubles in the financial markets, according to a new survey. The latest quarterly Business Opinion survey carried out by the Institute of Directors (IoD) found that 4 per cent of company directors are more rather than less confident about their firm’s prospects. In the IoD’s previous quarterly survey, some 24 per cent of directors said they were more rather than less optimistic about the future. Some 15 per cent of directors reported that the crisis in the credit markets had adversely affected sales. The proportion of directors who believed their companies were performing well, as opposed to those performing below standard, slipped from 77 per cent in the previous survey to 73 per cent. Graeme Leach, chief economist at the IoD, said: “This is a pretty gloomy survey, with the decline in business confidence worrying.” But Mr Leach added: “Thankfully, actual business performance remains high. Across the whole economy there is a real divide between the actual impact of the financial crisis to date and expectations of what it might bring in the future. The key question now is whether optimism will bounce back because, if it doesn't, business investment could be hammered.” Date:12 November 2007
Content by: Made Simple Group
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