Look to emerging markets, urges IoD

Miles Templeman said there is widespread recognition among members that the economy is in a very fragile state and the optimism felt at the start of the year has levelled off.

"I don't think it's going backwards, it just hasn't progressed," he told the Yorkshire Post during a visit to Harrogate and York. His members are expecting a little growth, but not much and this "bumping along the bottom" will continue well into next year, he said.

IoD members believe the coalition government has made a good start to getting the public sector into shape by cutting back on unproductive and unaffordable jobs and in recognising that it is the private sector that will create new jobs, he added.

Mr Templeman said: "In recognition that growth in the UK and Europe is going to be very tough we have to improve our presence in emerging and growth markets. We are there, but go to India and China and everyone is saying British companies could do more."

Prime Minister David Cameron is due in India this month on a state visit.

Closer to home, Mr Templeman said union leaders who are threatening action against job losses in the public sector "need to recognise they can help the process rather than block it" by assisting with retraining programmes for affected staff.