While businesses optimism is decreasing in emerging economies it is on the rise it the UK and US, according to a research by Grant Thornton International.
The firm’s International Business Report (IBR) recorded the highest level of business optimism for the UK in 22 years, with 76% of surveyed businesses confident in future growth prospects in Q3 of this year. In comparison, in Q2 only 34% showed optimism. In the US business optimism slightly decreased from 55% in Q2 to 52% in Q3.
These figures contrast with those of emerging economies which decreased significantly. Latin America fell from 48% to 38%, Russia business optimism dropped from 29% to 19%, Turkey hit a record low 6%, as did South Africa with 18%. Of the emerging markets only China saw a rise in its business optimism from 4% in Q2 to 31% in Q3.
Grant Thornton International global chief executive Ed Nusbaum said: "The results highlight a subtle but significant shift in global economic growth patterns, with some rebalancing towards developed markets like the UK and US."
"Clearly businesses should not write off emerging economies in their search for growth, but the results highlight the reversal of fortunes in developed countries," he added.
Nusbaum warned that weeks of budget and debt ceiling negotiations in the US already had a negative impact on growth prospects and business optimism worldwide. As the US budget is only agreed until mid January and the debt ceiling by mid February, he said that "businesses both in the US and across the world face a nervy few months".
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe IBR survey is based on interviews with 3,300 chief executive officers, managing directors, chairmen or other senior executives of both listed and privately held business worldwide.
Related link
Grant Thornton International Business Report