The Institute of Directors’ (IoD) survey of 1,000 business leaders also found that fifty-three percent thought there was a moderate risk of recession during the year.
Forty-three percent of those surveyed by the IoD think any recession will be short and mild, whilst ten percent believe it’ll be long and deep. One key area of concern highlighted y the survey was the future of the Euro, with half of the company directors believing there is a high or very high risk of a Euro break-up this year.
Graeme Leach, chief economist at the IoD, said: “The resounding message from the survey is the critical role of confidence at this stage in the economic cycle.
“If the Euro crisis stabilises, confidence could return relatively quickly and companies could dust down business investment and recruitment plans put on hold last year.
“Alternatively, of the euro crisis gets worse, confidence is highly unlikely to return this year."
The survey supports previous findings from the National Institute of Economic and Social Research which predicts a UK recession in the first half of 2012, after the UK economy shrank by 0.2 percent in the last quarter of 2011.
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