KPMG Global Business Outlook survey: Czech manufacturers’ slight optimism continues
22.04.2010Company: KPMG Česká republika, s.r.o.
World economic recovery set to continue during coming year. Czech manufacturers’ optimism – though improved again – remains below the levels recorded before 2009.
According to the latest KPMG Global Business Outlook Survey, business activity across the globe is widely expected to rise during the next twelve months, underpinned by a further improvement in world economic conditions. Companies predict solid growth of both revenues and profits. Correspondingly, investment is set to increase and employment is also expected to rise.
The net balance for global business activity in manufacturing stands at +50.9 (up from +42.9) while the equivalent figure in the services sector stands at +44 (down slightly from +46.5 last time but still strongly optimistic). This suggests a firm majority believe their businesses will be getting busier in the coming 12 months.
The outlook for improved business revenues is similarly healthy with a net balance of +42.5 in manufacturing (up from +37.4) and +37.9 in services (flattening out a touch from +40.7 last time). Optimism around profits is also holding up robustly at +35.3 in manufacturing (up from +32.1) and at +35.5 in services (from +36.2 last time).
Looking at business activity expectations in manufacturing, the BRIC countries now boast a net balance of +63.4, with Brazil leading the way at a staggering +84.2. Only the US (at +65.7) comes near to matching the BRIC numbers. The European average is +43.4, with the UK the stand-out performer at +57.9. In the services sector, BRIC optimism runs at +58.3 and is matched by the US at +60.3 with Europe further back at +39.5. This time around, France leads the way for Europe, returning a net balance of +52.4.
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