Economic confidence among Guernsey business executives remains higher than comparable jurisdictions.
A survey by the Institute of Directors local branch revealed there was almost no change in net confidence in the prospects for Guernsey’s economy since May.
It stands at -12% which is higher than Jersey, with -34%, and the UK, with -73%.
78 respondents were generally more optimistic about their own businesses prospects than the economy, however.
Expectations for revenue and investment have improved, but higher operating cost and a slowing in headcount growth were recognised as challenges.
Air and sea links have also climbed up the agenda as areas of concern, as well as uncertainty over the tax reform options which will be presented to the States in the first half of next year.
Concerns with the public sector included an inability to control public spending, lack of plans for economic growth, a lack of joint working with Jersey, and issues with competitiveness and infrastructure investment.
Richard Hemans, Economic Lead for the IoD Guernsey Branch, said: “This latest survey shows that whilst confidence in Guernsey’s economy remains below desired levels, directors are becoming increasingly optimistic about investment, revenue and profit prospects. However, they continue to face significant structural challenges, particularly around connectivity, labour and housing.
“The comparative strength of Guernsey’s confidence levels against the UK and Jersey demonstrates the underlying resilience of our business community but also highlights the importance of maintaining our competitiveness.”