Firms hold back on investment as they worry about recovery

Ben Southwood
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BUSINESS leaders are highly sceptical about the possibility of a recovery coming soon, and are postponing investment decisions as a result, a poll from the Institute of Directors revealed today.

Almost two thirds of those polled believe there is low or zero probability of the UK climbing out of its slump during 2012 – and just seven per cent deem recovery this year highly probable.

Forty-four per cent of business leaders polled reported postponing at least one investment or employment decision during the year on uncertainty about the economic climate.

Businesses also heaped scorn on the government’s handling of the economy, judging them ineffective by large margins on employment law, business regulation and taxation policy (see chart above).