According to the latest McKinsey Quarterly global survey, executives' overall confidence in economic conditions has risen for the second quarter in a row, though the overall economic outlook six months out is a bit less positive. China is the only country where executives believe conditions will be better in six months, either globally or in their own country and industries.
Expectations(% of respondents. Over 50= more positive than negative response) | |
Current Economic Conditions In Your Country vs. 6 Months Ago | |
Dec 2005 | 56% |
Mar 2006 | 60 |
Expectation For Your Country 6 Months Ahead | |
Dec 2005 | 56 |
Mar 2006 | 58 |
Current Economic Conditions In Your Industry vs. 6 Months Ago | |
Dec 2005 | 57 |
Mar 2006 | 59 |
Expectations For Your Industry 6 Months Ahead | |
Dec 2005 | 58 |
Mar 2006 | 59 |
Source: McKinsey Quarterly Global Survey, April 2006 |
More executives plan to change the size of the workforce over the next six months than had plans to change it six months ago, with a bigger bump in hiring.
Twenty five percent of executives in Europe are planning a decrease. The ongoing political battles in Europe over workers' rights and social taxation likely stem from the same underlying economic shifts that are causing many European executives to reduce the size of the workforce. At the industry level, most executives around the world expect conditions to remain at the same, fairly positive level, but broader economic conditions are expected to falter slightly. Executives in developed countries in Asia and the Pacific expect the biggest drop.
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