McKinsey Global Survey results
Economic Conditions Snapshot,December 2011
Executives’ views about the global economy and their companies’ prospects in most regionsare more positive than in September, though they are still gloomier than in June.
Executives’ expectations for corporate profit are on the rise.
Fifty-six percentexpect an increase in the next six months, up from just 45 percent in September. Andalthough more executives are worried about low consumer demand than any other threat toeconomic growth, a bigger share now also expect demand for their companies’ products orservices to increase over the next six months than they did in September. In spite of this hopefor improvement, executives do indicate that they’re hedging their bets a bit. The sharesaying their companies are postponing capital investments or M&A has risen somewhat sinceJune,1 perhaps an indication that many are waiting to see how the eurozone crisis plays out.
More broadly, executives from around the world say they are only a little more worried aboutseveral threats to economic growth, including sovereign-debt defaults,2 than they were inSeptember. At a global level, economic expectations aren’t very different, with larger sharesresponding somewhat more negatively than positively. But there have been some notableregional changes, mostly for the better—even among executives in the eurozone, where theshare expecting economic conditions in their countries to worsen in the next six monthshas fallen to 52 percent from 57 percent in September; still, their expectations have not recoveredfrom the considerable change since June, when only 19 percent said the same.
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