The latest Global Economic Conditions Survey (GECS) from ACCA and IMA shows that global business confidence is at its highest in 12 months, with the US continuing a stable recovery.
The Q3 2016 GECS survey of more than 1,512 finance professionals and more than 150 Chief Financial Officers around the world, found that confidence in North America improved during Q3, with only 32% of firms reporting they were less confident – down from 36% in the Q2.
Business confidence in the U.S. improved for the third quarter in a row and is now at its highest level since Q2 of last year. The recent improvement in confidence coupled with strong employment growth and high core price pressures are all reasons to think that the Fed will resume its tightening cycle sooner rather than later. The report notes that the investment opportunities index fell to its lowest level since the final quarter of 2012, possibly indicating that uncertainty over the outcome of November’s presidential election is causing companies to put big plans on hold.
Meanwhile, fears that headwinds from the U.K. vote to leave the E.U. in June could spread to the global economy have not been realized, with confidence among U.K. businesses holding up relative to the previous quarter – although it is still low, with respondents reporting a decrease in confidence outnumbering those reporting an increase. With protectionist sentiments on the rise across many nations, the November presidential election could have a significant impact on whether this improving confidence translates into genuine increases in employment and investment.
Faye Chua, head of business insights at ACCA, says the survey highlights the importance of governments supporting growth and their increasing realization of the limits of monetary policy. [...]
Full report
© ACCA - Association of Chartered Certified Accountants
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article