40% believe the downturn will end in the next 12 months; previously 70% believed it would extend for 1–2 years and beyond.
In the first quarter of 2010, Ernst & Young and the Economist Intelligence Unit (EIU) surveyed over 800 senior executives about their confidence in economic recovery, capital availability and allocation, and boardroom priorities and emerging practices in the way companies manage their capital agenda.
Profile of respondents
- EIU panel of 817 executives surveyed in March 2010
- Companies from 51 countries including Australia, China, France, Germany, India, Japan, Russia, UK and the US
- Cross-section of respondents from over 40 industries
- 329 CEO, CFO and other C-level respondents
- Up to 419 companies would qualify for the Fortune Global 500 based on revenues
Comparing these latest Capital Confidence Barometer findings with results from our 2009 survey, we saw fascinating — and encouraging — developments:
- The broader economic outlook has improved with 40% believing the downturn will end in the next 12 months; previously 70% believed it would extend for 1–2 years and beyond.
- A solid 61% of respondents expect the downturn to end in their industries within 12 months, compared to 49% previously.
- Increasing optimism sees 47% of companies now expecting to acquire in the next six months — an increase of 22%.
Looking forward, we will regularly revisit the Capital Confidence Barometer and continue to provide this unique snapshot of business confidence and topical insights into the marketplace.
