Partner Article

Bosses bleak about 2008 prospects

Earlier this week we reported on a survey conducted by Orange which revealed that UK business owners were confident about their fortunes in the coming year. A survey from the Chartered Management Institute (CMI), however, has painted a different picture.

The survey of more than 500 bosses showed that only two out of five were optimistic about the year ahead, a fall of more than 10% compared with a similar study a year ago. Many company managers believe that 2008 will be a tough year for business because of rising costs, higher levels of debt and a shortage of skills.

Most of those questioned by the CMI said the rising cost of energy will have a negative impact on their business. Four out of five predicted an increase in household debt, with fewer than one in three believing that consumer spending will increase. The survey also showed that half of managers are worried that a lack of skilled executives will also have a negative impact on their organisation next year.

Jo Causon of the CMI said: “In the current climate, it is natural for employers to feel some degree of uncertainty. However, the decline in organisations developing their managers is a great concern. “If employers fail to invest in the skills needed for long-term success, the UK will find it difficult to compete on a global scale in the future. It is encouraging that some individuals are taking the initiative and planning to develop themselves through qualifications and higher education in the New Year.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .