YPO Global Pulse Survey: EU business confidence falls to three-year low
(Thomson Reuters ONE) -
LONDON - 9(th) August 2016 - YPO, the premier chief executive leadership
organization in the world, announced today that business confidence in the
European Union dropped significantly in the second quarter of 2016, following
the United Kingdom's decision to leave the EU. The YPO Global Pulse Confidence
Index for the EU fell 3.1 points to 58.5, its lowest level in three years.
Having recorded the highest level of confidence of any region in the world for
the previous three quarters, the EU now trails behind the global index of 59.7.
The decline in confidence across the EU was primarily caused by a sharp drop in
economic confidence in the United Kingdom. Following the unexpected referendum
vote to leave the EU, the YPO Global Pulse Index for the United Kingdom reported
a drop in confidence of 5.0 points to 57.9, the lowest level since first quarter
2013.
Beyond the United Kingdom, there were variations in confidence levels among the
business leaders and chief executives across major EU economies. Confidence in
Germany fell 3.8 points to 55.5, its lowest level since third quarter 2014.
However, confidence held steady in Italy, edging up 0.3 point to 63.4, while
Spain climbed 1.8 points to land at 64.3. France gained 2.6 points to reach
58.7, its highest level for more than a year.
Taken as a whole, the European Union bucked the global trend, with most regions
in the world recording a modest increase in optimism in the second quarter.
Worldwide, the YPO Global Pulse Index for the second quarter of 2016 rose 1.4
points to 59.7, its highest level for a year. Asia gained 2.9 points to land at
62.9, making it the most confident region in the world. The United States rose
1.2 points to 60.8. Latin America climbed 3.6 points to 54.4 while the Middle
East and North Africa region remained almost unchanged, edging up 0.3 point to
55.9. Africa increased 0.6 point to 53.8, remaining the world's most pessimistic
region.
"It's of little surprise that business confidence has taken a hit following the
Brexit decision and mounting concerns about financial instability within many
European economies. This uncertainty is likely to continue throughout the rest
of this year, as negotiations on the terms of the United Kingdom's withdrawal
from the EU get underway and fears persist about potential recession in several
major economies," said Erik Lorenz Petersen, YPO European regional chair from
Denmark. "However, at 58.5, it should be noted that EU confidence remains
relatively strong across the region, and the immediate economic impact of Brexit
may not be as catastrophic as many business leaders feared in the days after the
referendum. CEOs still believe there are opportunities for growth and success
despite the current turbulence."
Key findings in the EU
Concerns over short-term economic conditions
When assessing the economy six months from now, business leaders in the EU
reported reduced levels of optimism.
More than a quarter (29%) of CEOs predicted that business and economic
conditions would deteriorate over the next six months, against one-third (34%)
who predicted an improvement. In the previous quarter, only 22% forecasted a
worsening in conditions while 35% anticipated an improvement.
CEOs remain optimistic about prospects for their own organisations
Despite a less optimistic outlook about the general economic climate, most
business leaders remained relatively positive about the prospects for their own
organisations. Nearly 59% of CEOs expected to increase sales in the next 12
months, versus only 10% who expected a decline. One-third of business leaders
expected to increase headcount within their organisations, with only 8%
expecting to reduce staff numbers. More than one-third of YPO members (35%) in
the EU expected to increase fixed investment in the year ahead, versus 12% who
expected to cut fixed investment levels.
Sharp drop in confidence among British business leaders
Unsurprisingly, confidence amongst chief executives and business leaders in the
United Kingdom fell significantly as a result of the referendum decision. Half
of CEOs said that current business conditions were worse than six months prior,
and the same proportion (49%) expected conditions to deteriorate further over
the next six months. This was a far more pessimistic outlook than in the
previous quarter's survey, when only 28% reported worse conditions than six
months prior, and only 26% expected the economic landscape to deteriorate in the
six months ahead.
YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of July 2016,
gathered answers from 2,389 chief executive officers across the globe, including
238 in the European Union. Visit www.ypo.org/globalpulse for more information
about the survey methodology and results from around the world.
# # #
About YPO
YPO is the premier chief executive leadership organization in the world,
representing a global community of leaders committed to the shared mission of
becoming Better Leaders through Lifelong Learning and Idea Exchange(TM). YPO
today provides more than 24,000 members in more than 130 countries with access
to extraordinary educational resources, alliances with leading institutions, and
specialised networks designed to support their business, community and personal
leadership. Altogether, YPO member-run companies employ more than 15 million
people around the world and generate USD6 trillion in annual revenues. For more
information, visit www.ypo.org.
Contact:
YPO
Linda Fisk
Office: +1 972 629 7305 (United States)
Mobile: +1 972 207 4298
press(at)ypo.org
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originality of the information contained therein.
Source: Young Presidents? Organization, Inc. via GlobeNewswire
[HUG#2033711]
Unternehmensinformation / Kurzprofil:
Datum: 09.08.2016 - 06:01 Uhr
Sprache: Deutsch
News-ID 487886
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Kategorie:
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