UK stands out as global confidence falters in Markit global survey
14 July 2014
UK businesses are among the most confident for the next year in a gloomy survey of global economies, according to a global survey.
Mon 14 Jul 2014
UK businesses are among the most confident for the next year in a gloomy survey of global economies, according to a global survey.
As global businesses fret about the prospect of tighter monetary policy, a hesitant Eurozone recovery and few positives from emerging markets such as China, UK companies are busily looking ahead to increasing spend on recruitment and investment in plants and machinery.
"UK companies are generally confident in terms of their outlook for the coming year and investing in additional staff, plant and machinery, as well as extra wage costs,” Chris Williamson, chief economist at financial information services provider Markit told Recruiter. “Expectations of looming interest rate hikes have dampened the mood out there since earlier in the year, but it’s the most buoyant it’s been since before the global financial crisis.”
Markit’s Global Business Outlook Survey, conducted in June, asks what firms are expecting in terms of business growth in the coming year and is based on responses from 11,000 participating companies.
The outlook for the US remains buoyant but has also slipped lower. Employment and investment intentions fell especially sharply. Energy prices have helped bring inflation expectations down to a new record low.
For Japan the survey provides particularly welcome reassurance that economic recovery will be sustained. Optimism has rebounded after worries about the impact of the sales tax have eased. Prices are expected to continue rising, suggesting deflation should remain beaten.
In the Eurozone, France is the major concern, with companies anticipating renewed cuts in employment and investment. Germany still looks to be on course for robust economic growth in the coming year, but Spain is the pick of the larger member states, with optimism at a post-crisis high.
As global businesses fret about the prospect of tighter monetary policy, a hesitant Eurozone recovery and few positives from emerging markets such as China, UK companies are busily looking ahead to increasing spend on recruitment and investment in plants and machinery.
"UK companies are generally confident in terms of their outlook for the coming year and investing in additional staff, plant and machinery, as well as extra wage costs,” Chris Williamson, chief economist at financial information services provider Markit told Recruiter. “Expectations of looming interest rate hikes have dampened the mood out there since earlier in the year, but it’s the most buoyant it’s been since before the global financial crisis.”
Markit’s Global Business Outlook Survey, conducted in June, asks what firms are expecting in terms of business growth in the coming year and is based on responses from 11,000 participating companies.
The outlook for the US remains buoyant but has also slipped lower. Employment and investment intentions fell especially sharply. Energy prices have helped bring inflation expectations down to a new record low.
For Japan the survey provides particularly welcome reassurance that economic recovery will be sustained. Optimism has rebounded after worries about the impact of the sales tax have eased. Prices are expected to continue rising, suggesting deflation should remain beaten.
In the Eurozone, France is the major concern, with companies anticipating renewed cuts in employment and investment. Germany still looks to be on course for robust economic growth in the coming year, but Spain is the pick of the larger member states, with optimism at a post-crisis high.
