According to a McKinsey Global Survey, executives’ views on the global economy, namely their companies’ prospects, are more positive now than in September.
Executives’ expectations for corporate profit are on the rise: About 56% said they expect a profit jump in the next six months, up from just 45% in September. However, executives remain worried about low consumer demand than any other threat to economic growth, and the majority said they are postponing capital investments driven mainly by European financial uncertainty.
Globally, economic expectations are slightly negative, but relatively unchanged. A larger percentage of respondents said they were more negative than positive on the global economy, but positive regional changes were reported. Fewer executives (52%) expect worsening conditions in the next six months than in September (57%.) Still, their expectations have not recovered from the considerable change since June, when only 19% said the same.
To view the entire McKinsey Survey visit here.