IoD survey points to economic recovery and rate hikes

The Institute of Directors expects to see higher UK interest rates this year, beginning with a rise before the end of June. The forecast is based on the results of its Business Opinion Survey for the first quarter of 2002, which, on the whole, points to economic recovery. The survey shows a slippage in company performance, lower capacity utilisation and weaker profits, despite better output growth over the past three months and a sharp recovery in optimism. However, all the forward indicators improved, especially export orders and expected profits. The IoD attributed some of ...