The survey, which was completed by 139 IoD members – 19% of the IoD Guernsey membership – found that net confidence had risen from minus-25% in November 2024 to minus-11% in May this year.
While still negative, the survey said this represented a ‘significant improvement and a divergence’ from the UK, where business confidence remained low at minus-51%.
‘Despite a backdrop of ongoing challenges, it’s encouraging to see the continued resilience of Guernsey’s businesses, particularly their willingness to maintain investment and employment plans,’ said IoD economic lead Richard Hemans.
The uplift was led by the finance and professional service sectors, which the survey said were likely to be influenced by the positive outcome of the recent Moneyval assessment.
However, sentiment in the construction and retail sectors fell sharply, with those industries continuing to grapple with ongoing pressures.
IoD members remained broadly positive about their own organisations, with a net confidence reading of plus 42%.
Two-thirds of respondents expected their costs to increase over the next 12 months, consistent with the last survey done in November.
Expectations for profits improved marginally but remained negative overall, however businesses indicated they still planned to grow headcount and investment.
Uncertainty around tax reform had eased, which the survey said was likely due to the States’ decision to introduce GST-plus from 2027.
Mr Hemans said the main negative impacts members had identified included the cost and availability of labour, air and sea links, skills, and housing.
‘The main themes coming through are that we need to invest in our infrastructure,’ he said.
‘We need to find ways to improve our energy, digital infrastructure, and transport, and we need to diversify our economy.
‘We also need to improve the housing stock, and the cost and availability of housing.
‘That’s absolutely key for ensuring we can attract and retain people to live and work in the island.’
He added connectivity was ‘fundamental’, and praised the improvement in sea links under Brittany Ferries.
But he warned Aurigny’s problems needed to be resolved as the airline was fundamental to Guernsey’s success.
‘The survey has provided a clear steer on what business leaders want to see from the next States – strong leadership, bold decisions, and faster action on infrastructure, housing and connectivity.’
You need to be logged in to comment. If you had an account on our previous site, you can migrate your old account and comment profile to this site by visiting this page and entering the email address for your old account. We'll then send you an email with a link to follow to complete the process.