| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Global Economy Last Updated: Mar 28, 2011 - 1:22 PM


Prospects for full global economic recovery rebounded before Japan, North Africa and Middle East woes
By Finfacts Team
Mar 28, 2011 - 1:17 PM

Email this article
 Printer friendly page
Shanghai's World Financial Center - - China's tallest building

After a dip in confidence four months ago which raised doubts over the sustainability of the global economic recovery, optimism again appears to be back in fashion across virtually all key markets. However, events in Japan, Middle East and North Africa are not factored in.

The latest edition of Pulse– the Global Business Outlook survey from KPMG International - reveals that global business optimism around several key indicators now stands at the highest levels ever recorded by the survey.

The Spring 2011 Pulse survey, compiled by research firm Markit Economics on behalf of KPMG International, also shows that confidence across Europe and the US finally appears to be approaching parity with their BRIC counterparts.

In the Winter 2010 Pulse survey, falls of between six and ten points were recorded across many key indicators such as activity, revenues and new orders. Many of those losses have now been recouped. For example, in the services sector, 55 percent of respondents predict an improvement in business activity in the next year. Just eight percent predict a decline; creating a net balance of +47, up from +36 last time around. Similarly strong – and improving - net balances were also recorded against new orders (+42), revenues (+39), profits (+35) and even employment (+19), which has typically lagged all other indicators throughout the recession.

The story is even more promising in the manufacturing sector with four of the top five indicators all recording record highs since the Pulse survey became global in October 2009. Net balances for business activity and new orders both passed the +50 mark, with revenues not far behind at +49. Employment optimism also hit its record mark at +25. At +36, optimism around increased profits may not be at a survey-high point but this figure still represents a nine point improvement from Winter 2010.

Commenting on the latest survey findings, Alan Buckle, Global Head of Advisory at KPMG, said: "I think the most encouraging aspect of these numbers is that the recovery is worldwide. However, while the survey takes some account of events in North Africa  and the Middle East, we have yet to see the impact of the tragic events in Japan. The global figures look strong but the US numbers have also rebounded to the levels of last summer while the European numbers have surged even further ahead than that. China and the other high growth economies are no longer alone to blaze the recovery trail. As long as that was the case, the economic recovery always felt somewhat fragile as it lacked wholesale support from the world’s two biggest economic blocs. With Europe and the US now appearing to be properly on board, the recovery feels more robust. However we need to see what the impact is of global events  -- particularly in Japan."

Unsurprisingly, some problems still remain with inflation appearing to be a key hindrance. In manufacturing for example, belief that input prices will rise in the coming year stands at +47. This is up 17 points from Winter 2010 as increasing commodity prices make their presence felt. Belief that such rises can be passed on via higher output costs is also up 13 points but this still only results in a net balance of +31.

Within the service sector, the trend is the same although the numbers are slightly more muted. The net balance of those expecting input prices to increase rose from +21 to +24 whereas the net balance of respondents expecting to be able to charge higher prices stands at just +15.

Alan Buckle continued: "Prior to recent events in Japan the main dampeners of optimism were the problems of rising commodity prices, the fear of inflation and the need to still bring deficits under control. However, I get more of a feel now that companies are prepared to simply get on and deal with such things. Let’s hope that for business as well as human reasons, events in Japan are quickly under control and this confident survey isn’t invalidated."

Pulse  - -  the Global Business Outlook Survey for worldwide manufacturing and services - is produced by Markit Economics on behalf of KPMG and is based on a survey of around 11,000 manufacturers and service providers that are asked to give their thoughts on future business conditions. The reports are produced on a tri-annual basis, with data collected in February, June and October. The latest survey was conducted between February 11 and 25.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Global Economy
Latest Headlines
Strong Swiss franc gloom deepens for exporters
Global investors shift focus to China; EM outflows surge to $1tn in 13 months
Global oil glut will continue into 2016
Stable growth momentum in OECD area but slowing expected in China
Prices for major food commodities in July lowest since September 2009
Global manufacturing in July weakest level in two years
US, China and UK lead top 25 target countries for foreign direct investment
Budget surpluses rare in developed countries from 1980s; Italy, France, Greece had none in 60 and 40 years
Singapore, London and Shanghai top cities for new FDI projects in 2014; Dublin in 11th place
Exchange rates shuffle as Dublin ranked 49th most expensive city; Paris at 46; Berlin at 105
Western consumer groups under pressure in China and India
Developing countries facing “structural slowdown” likely to last for years
OECD BEPS Tax Project: Amazon books UK sales in UK; Australia proposes up to 100% in penalties
Emerging Markets Index falls to 12-month low in May as manufacturing contracts
US and world economies slowing in 2015 — OECD
Global manufacturing production rose slightly in May; Trade flows weak
GDP growth in OECD area slowed to 0.3% in the first quarter of 2015
Only one quarter of workers worldwide have stable employment contracts
Automatic Exchange of Tax Information: OECD says countries won't be able to game system
Gates Foundation loses in Swiss family's shares coup
Minimum wage levels in OECD countries
Brent oil benchmark over $68 a barrel - up almost 50% in 2015
Global growth slows and manufacturing dips to 21-month low
Family-controlled firms dominate European business
Top 10 of world’s 250 largest consumer products companies account for 30% of sales
Nine of world's 20 fastest growing economies in Africa
Globalisation maybe stalling as trade growth remains weak
Global growth prospects uneven across major economies says IMF
Emerging markets growth lowest since 2009; Global growth at 30-year average
China's economic rebalancing hitting Latin American economies
New York, London, HK & Singapore top global financial centres index; Dublin recovers
Global growth in modest expansion from low oil prices/ monetary easing says OECD
Composite leading indicators point to positive change in growth momentum in the Eurozone
Global labour market trends portend paradise for some but uncertainty for many workers
Vienna remains top of World Quality of Living Rankings in 2015; Dublin at 34
Zurich and Geneva overtake Singapore to become world's most expensive cities
HSBC Switzerland and Falciani: How it happened
Global economic power to continue shift from advanced economies
Global food price index falls in January; Cereal output set for record
Global debt has risen $57tn or 17% of world GDP since 2007