03 Feb 2026
The confidence of business leaders in both their own organisations and the wider UK economy rose markedly in January, according to data from the Institute of Directors (IoD).
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.'