Share

Survey: CEO pessimism on economy spreads after upbeat 2018

Share

DAVOS, Switzerland (AP) — A survey of hundreds of corporate leaders shows “a record jump in pessimism” about the world economy, with sentiment doused by trade spats, a global downturn and fading benefits from U.S. President Donald Trump’s tax cuts.

Consulting firm PwC says the latest edition of its annual survey of CEOs found 30 percent feel growth will decline this year, a six-fold increase from a year earlier — when 57 percent were optimistic.

The survey, released Monday on the eve of the World Economic Forum opening in Davos, Switzerland, tallies responses from more than 1,300 CEOs worldwide and is billed as a good predictor of economic results.

In an interview, PwC Chairman Bob Moritz said: “There’s a not-surprising increase in the amount of pessimism from the CEOs and the global economy as they look at the next 12 months.”

He said “confidence is waning” amid rising trade tensions and protectionism.

Thirty-five percent of CEOs cited the perennial concern about over-regulation as the top threat to their businesses. But “policy uncertainty” — a new metric introduced this year — came a close second, the survey found.

The survey of CEOs in 91 territories was conducted online, in person and by phone in September and October.

The souring mood was perhaps most pronounced about the United States: The survey found a 41-percentage point drop in CEOs choosing the U.S. as a top market for growth, and optimism among North American executives dropped the most sharply — from 63 percent to 37 percent.

Moritz suggested that the U.S. dominance in world affairs isn’t what it once was, noting how the center of gravity of capital markets had been the U.S. over nearly the last half-century. “Now you’ve got it shifting a little bit more east” to China and other parts of Asia, he said.

The Trump administration’s salvos over trade with China and other key trading partners have taken a bite: PwC found that 98 percent of U.S. CEOs and nine in ten Chinese counterparts voiced concerns about the U.S.-China trade issues.

Moritz also pointed to uncertainty’s about Brexit, saying simply: “You never know where these things are going to go.”

___

Follow the AP’s coverage of Davos here: https://www.apnews.com/Davos

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.

Conversation