IoD: Third of business leaders see high risk of recession

ONE IN three UK directors think there is a high or very high risk of recession, a survey by the Institute of Directors (IoD) shows.

However, the survey of 1,000 business leaders revealed that company directors expect any future recession to be mild. And despite the weak UK macroeconomic outlook, companies appear to be relatively optimistic about their own prospects, with 50% expecting higher or much higher revenues in 2012 than in 2011.

The biggest source of economic concern is the potential for a euro break-up with half of respondents believing there is a high or very high risk of it happening.

“The resounding message from the survey is the critical role of confidence at this stage in the economic cycle. If the euro-crisis stabilises, confidence could return relatively quickly and companies could dust down business investment and recruitment plans put on hold last year,” said Graeme Leach, chief economist at the IoD.