Optimism returns in eurozone periphery economies
LONDON - 5th August 2014 - Business leaders in the European Union are more
confident about economic and business prospects in the region than at any time
since the 2009 recession, according to a YPO survey of CEOs. The YPO Global
Pulse Confidence Index for the EU came in at 62.5 in July, marginally higher
than its January and April readings.
On the back of continued low interest rates and other stimulus measures
administered by the European Central Bank, the mood amongst EU CEOs has improved
significantly over the last five quarters, with the Global Pulse index gaining a
staggering 11.1 points since April 2013 when it languished at 51.4. Over this
brief period, the European Union has gone from being the most pessimistic region
in the world to being in line with other regions.
"These results, when considered with the readings from the previous two
quarters, suggest that EU business leaders have moved away from the financial
crisis of the near past and are looking ahead to opportunities," said Anastasios
Economou, managing director of iGroup and an executive member of YPO's Greater
Europe Chapter. "What CEOs need to see now is geopolitical stability in Europe
alongside cohesive and credible signs that governments are committed to
promoting private sector activity, so businesses can undertake the level of
investment and hiring needed to sustain the recovery."
Globally, the YPO Global Pulse Confidence Index rebounded from a half-point dip
last quarter, increasing 1.5 points to 64.0. The rising tide was led by a 3.9-
point run-up in Asia and a 4.4-point increase in Canada. With the exception of a
marginal decline in Latin America, every region contributed to the global gain.
Asia returned to its position as the world's most optimistic region. The U.S.
confidence index rose for the third consecutive quarter, to 64.8.
Key findings in the EU
Confidence buoyant in countries threatened by sovereign debt crisis: In the
first quarter of 2014, less than two years after bailouts of Greece and Spain
and the financial shock in Cyprus, the debt-laden eurozone periphery economies
as a group became significantly more optimistic than the core economies for the
first time in five years, a phenomenon that continued into the second quarter.
The YPO Global Pulse eurozone periphery index remained largely unchanged at
62.3, comfortably above the confidence reading of the core economies at 57.4.
Small businesses display most confidence: CEOs of small businesses (less than
100 employees) continued to be more confident than their counterparts within
larger organisations. Fully 70% of small-business CEOs surveyed said turnover
would increase by more than 10% over the next 12 months, compared with 61% of
mid-size companies and 58% of large organisations.
CEOs of small businesses were also more confident about their hiring
expectations over the next year. More than a third (38%) expected to grow
headcount, compared with 25% of CEOs in mid-size companies and 26% in large
YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of July,
gathered answers from 2,975 chief executive officers across the globe, including
319 in the European Union. Visit www.ypo.org/globalpulse for more information
about the survey methodology and results from around the world.
YPO (Young Presidents' Organization) is a not-for-profit, global network of
young chief executives connected around the shared mission of becoming Better
Leaders Through Education and Idea Exchange(TM). Founded in 1950, YPO today
provides 20,000 peers and their families in more than 120 countries with access
to unique experiences, world-class resources, alliances with top learning
institutions, and specialised networks that help them enhance their business,
community and personal leadership. Altogether, YPO member-run companies employ
more than 15 million people around the world and generate US$6 trillion in
annual revenues. For more information, visit www.ypo.org. Also see us on
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YPO (Young Presidents' Organization)
+33 6 8494 9788 (Europe)
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Source: Young Presidents? Organization, Inc. via GlobeNewswire