This reduction in confidence is also borne out in the underlying indicators: Business investment intentions for the year ahead dropped 14 points, from +24 in July to +10 in August - the sharpest decline since the beginning of the pandemic lockdowns. Headcount expectations also dropped 14 points, from +24 to +10 - this was likewise the sharpest fall since the first pandemic lockdown. Revenue expectations fell from +36 to +28 and cost expectations increased from +81 to +83.
Anna Leach, Chief Economist at the Institute of Directors said, "It's disappointing to see last month's welcome uptick in business leader confidence snuffed out over the summer. It is notable that the sharpest drops in our economic measures are in investment and headcount expectations, whilst other measures have softened but not collapsed. Clearly, as the Autumn Budget approaches, there is an urgency for clarity on the government’s approach to taxes and economic support.
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