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Corporate Sector

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  • National Institute of Economic and Social Research

Abstract

The behaviour of companies lies at the heart of many of the current debates in the economy. First, investment trends are a direct result of company decisions, which depend in turn on profitability, credit availability and companies' assessment of future demand prospects. Second, the labour market outlook is dependent on corporate hiring plans, which are conditioned by demand prospects and the cost of labour. Third, inflationary pressures depend at least partially on the extent to which companies will pass input cost increases on to the consumer. Finally, one of the big debates in the current conjuncture is the potential impact of AI on the economy which will depend on the pace at which it is rolled out across the corporate sector. We deal with each of these issues below.

Suggested Citation

  • National Institute of Economic and Social Research, 2026. "Corporate Sector," National Institute Economic Outlook, National Institute of Economic and Social Research, issue Winter, pages 54-60.
    • Handle: RePEc:nsr:niesre:i:winteryy:2026p:54-60
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