Companies: More growth than fear

Source: McKinsey&Company

Economic Conditions Snapshot, June 2010: McKinsey Global Survey results

“Although economic confidence is clearly shaken, more executives remain positive than negative overall, which likely explains why most expect their companies to continue growing. Although fully ten percentage points fewer now expect consumer demand to grow this year than did so in April—down to half—the same share as in April expect to hire, mostly for full-time positions. The share expecting profits to grow this year is only slightly lower, at 70 percent (Exhibit 3).

Although executives are a little less optimistic, they don’t seem to be running scared: for both profits and demand, the choice that has gained the biggest share of respondents indicates stability, not a decrease. It is also notable that for both profits and demand, the variation among regions is typical of our surveys and relatively small among developed economies. The one exception is the very low percentage of eurozone companies (39 percent) expecting demand to rise.” Read more >