Zoho has pointed to fresh Institute of Directors data showing UK business confidence fell to a record low in March, as rising costs and geopolitical uncertainty weighed on sentiment. The IoD’s Economic Confidence Index showed optimism about the UK economy dropping to -76 in March from -63 in February, while confidence in companies’ own organisations also slipped into negative territory at -2 from +1.
The IoD said cost expectations rose to +88, the second-highest reading on record, while 71% of business leaders said they were concerned about geopolitical tensions affecting investment, markets, or business partners, and 58% pointed to supply chain disruption. Anna Leach, the IoD’s chief economist, said the outbreak of conflict in the Middle East had driven business leader confidence “to a new record low”, with manufacturers particularly exposed to fuel, shipping, and materials inflation.
Sachin Agrawal, managing director for Zoho UK, said companies were being squeezed by “a perfect storm of geopolitical uncertainty, wage growth, higher input costs and consequently a turbulent economy”. He argued that businesses are now scrutinising spend and prioritising productivity and ROI, with technology investments that deliver better data and forward-looking insight becoming more important.
Click here to review the full IoD March confidence release.
