Business confidence among all geographies and industries has surged, pointing to a global recovery, the tri-annual Business Outlook survey by KPMG International and Markit Economics showed Monday.
The survey showed that confidence in activity in the manufacturing and services sector over the next 12 months has increased, particularly in the U.S. and the BRIC economies. Moreover, confidence regarding new orders and business revenue improved. However, the outlook for employment was still less rosy. At the same time, confidence indicators within the European economies and Japan continued to to be weak.
Alan Buckle, Global Head of Advisory at KPMG said, "The latest Business Outlook numbers clearly demonstrate that almost all of us have turned the corner in terms of economic recovery." "A strong majority sees business being better in 12 months time than now; something which is consistent with GDP forecasts".
Buckle said the turnaround in the business confidence was remarkable, especially in the U.S. He noted that the figures would have important consequences to the East versus West challenge, with West having to address competitive threat from the East having increased.
"Before the recession, Western companies were facing an increasing competitive threat from the emerging economies," he said. "Two years later, their competitors already have their eyes firmly set on a growth agenda while Western businesses are only just beginning to recover."
"Therefore, the challenge of dealing with the competitive threat of the East has not gone away. In fact, it has been exacerbated".
