Economic uncertainty is still prevalent among CEOs, but there are hopes that the economy will turn a corner, a new study by the Institute of Directors has found.

Economic uncertainty is still prevalent among CEOs, but there are hopes that the economy will turn a corner, a new study by the Institute of Directors has found.

The survey of 220 CEOs, MDs and senior directors revealed that 65 per cent of respondents were not optimistic about UK prospects over the next three months, but the same percentage also thought that the economy would improve in the next 18 months.

Miles Templeman, director general of the IoD, said: ‘[The respondents] identified business services as the sector offering the greatest opportunity for work and therefore growth with local and central government and the NHS as being the next three sources for business wins ahead of manufacturing.’

The research indicated that most businesses have made alterations as a result of the recession. The majority (67 per cent) of companies have reduced costs, while 61 per cent have explored new markets and almost half (48 per cent) have developed new products. Significantly, less than ten per cent said they had not made any changes.
 
Templeman added: ‘Just as the pessimism around the credit crunch resulted in a stagnant market, it is hoped that this new-found confidence will act as a catalyst to get business back on track in 2010.’