29 January 2026
Businesses report improved confidence but hiring pressures
The latest data from the Institute of Directors shows an improvement in confidence from business leaders, with optimism up from -73 last November to -66 in December.
However, other measures were flat or reduced over the month. Investment intentions dropped from -17 to -21, headcount fell from -8 to -14 and revenue stayed broadly the same at +8.
The Directors’ Economic Confidence Index measures the net % positive answers from members of the Institute of Directors and is at an historically low level. Asked what would most boost business confidence, the top answers were reducing the tax on businesses (58.3%) and scaling back employment law reforms (56.6%), with other answers coming in below 30%.
Read more about the latest Directors’ Economic Confidence Index results.
However, other measures were flat or reduced over the month. Investment intentions dropped from -17 to -21, headcount fell from -8 to -14 and revenue stayed broadly the same at +8.
The Directors’ Economic Confidence Index measures the net % positive answers from members of the Institute of Directors and is at an historically low level. Asked what would most boost business confidence, the top answers were reducing the tax on businesses (58.3%) and scaling back employment law reforms (56.6%), with other answers coming in below 30%.
Read more about the latest Directors’ Economic Confidence Index results.
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