Business confidence rises to highest level since late 2024

07 May 2025

Data published by the Institute of Directors (IoD) has revealed that confidence amongst business leaders has risen to its highest level since before the 2024 Autumn Budget.

The IoD's Economic Confidence Index, which measures optimism in prospects for the UK economy amongst business leaders, rose slightly for the second month in a row from -58 in March to -51 in April.

Anna Leach, Chief Economist at the IoD, said: 'The overall mood amongst business leaders improved in April as the worst of the tariffs from the States were paused for 90 days. The IoD's headline confidence measure moved to its highest level since before the Budget, while investment, headcount and cost expectations all improved for a second month running.

'There's a strong sense of frustration amongst business leaders that the government has been quick to raise their costs, but slow to deliver policies which will support them to grow their businesses. The government is right to focus on public sector efficiency, but this needs to improve the pace of growth-friendly policy delivery as well as deliver value for money.'