03/12/2009 - Firms 'facing triple uncertainty'
Businesses may be putting off key decisions, including those on investment plans, due to economic and political uncertainties - a report suggests.
Almost half of the respondents in a survey of 1,200 members of the Institute of Directors said that political uncertainty was affecting their business.
Meanwhile, the economic climate is impacting on a host of business decisions.
Graeme Leach, chief economist of the IoD, said: "There is the normal steady state economic and political uncertainty which always faces business. But now on top of this is the ongoing uncertainty resulting from the financial crisis and a potential change in Government as well.
"All this uncertainty provides an incentive to wait and see and postpone decisions on key projects which may be difficult to reverse. The macroeconomic impact is similar to deflation when spending is put on hold today because it might be cheaper tomorrow."
Copyright © Press Association 2009
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