Economic downturn likely, the Institute of Directors warns

Cost of living crisis, inflationary pressures and uncertainty about Ukraine mean the UK's pandemic rebound is running out of steam

Company directors fear the cost of living crisis and tumbling consumer confidence will cause greater harm than previously estimated, increasing the risk of an economic downturn this year, according to a major new study.

The Institute of Directors (IoD) said in a survey last month that a lack of confidence in the economic outlook was the number one issue" facing British businesses as inflationary pressures combined with the uncertainty caused by the Russian invasion of Ukraine to heighten the risk of a recession.