Global business confidence wanes in June: Survey

FE Team | Published: July 15, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

LONDON, July 14 (Xinhua): Worldwide business optimism has waned compared to the two-year high seen earlier in 2014, said London-based Markit Monday in its Global Business Outlook Survey report.
The survey, which is based on responses from a panel of 11,000 companies that participate in the worldwide manufacturing and service sector purchasing managers' index (PMI) survey, is conducted three times a year. The latest one was taken in June.
The number of companies expecting to see their business activity levels rise in the coming year exceeded those expecting a decline by a substantial 39 per cent, which was slightly lower than the net balance of 40 per cent recorded in the previous survey.
The cooling of sentiment was partly reflecting the growing reality of policy being tightened in the United States and Britain, a still weak eurozone recovery and sluggish growth in emerging markets, said Markit.
Global net balance for expected employment and investment in the coming year dropped from 21 per cent and 18 per cent in February to 16 per cent and 12 per cent in June, report showed.
Meanwhile, the number of companies expecting their selling prices to rise over the coming year exceeded those expecting a decline by 11 per cent, significantly lower than 18 per cent four months ago and recording the lowest score since February 2010, data also showed.
Among the economies, however, Britain, though seeing confidence fall from February's record high, saw the highest level of business optimism of all major developed economies in terms of expectation about future activity, employment and investment.
US business expectation regarding activity levels for the year ahead were unchanged in June, compared to earlier in the year. Sentiments diverged between the "core" and "periphery" countries in the eurozone, of which business optimism waned in the core and rose in the periphery.
For BRIC countries, including Brazil, Russia, India and China, as a whole, the business optimism fell back to the survey lows seen late last year, said Markit.