The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, jumped to -48 in January 2026, from -66 in December 2025.
Business leader confidence in their own organisations also jumped, to +14 in January from -4 in December.
Anna Leach, Chief Economist at the IoD, said:
‘After record weakness last year, January saw a welcome – and fairly chunky – rise in the confidence of business leaders. There’s been an improvement across-the-board in the economic measures too, with the strongest improvements in revenue expectations and investment plans.
‘The year has begun with a high level of policy activity, including a number of packages designed to support businesses – from backing scale-ups and funding for export growth, to business rates relief for pubs and live music venues.
‘But these welcome moves continue to clash with very significant rises in the cost of doing business in the UK. There remains a need to ensure that the full weight of government policy is focused on driving up growth. In particular, we look for further progress in designing-out the risks to employment from the Employment Rights Act, alongside faster action to remove regulatory blockers to growth.’
READ MORE
10/02/2026
View all >
26/08/2026
Prime Minister urged to reverse IHT changes at Autumn Budget
Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.
UK inflation increases to highest rate in four months
The UK rate of inflation has risen to 2.9% - its highest level in four months.
Data shows UK economy grew between April and June
The UK economy grew by 0.4% between April and June, official data has revealed.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.