The global economic outlook is resilient despite volatility.
July and August marked a return to intense volatility not seen since the early days of the economic crisis in 2008.
Dramatic stock market activity and ultimately the global re-pricing of risk occurred after:
- The US credit rating downgrade
- The debt crisis in the Eurozone
- Weakening economic data from around the world
Nonetheless, two-thirds said that they felt the global economy was at least stable, if not modestly improving. Only 37% are pessimistic about global economic prospects.
| 63% |  | of the Ernst & Young 1,000 surveyed said that they felt the global economy was either stable or improving. |
What is your perspective on the state of the global economy today?
| 80% | | of those in the power and utilities and metals and mining sectors say the global economy is stable, modestly improving or strongly improving. |
Confidence in local economies rising
When asked their perspective on the state of their local economies, 71% cited a stable or improving environment, compared with 66% in April 2011 and 64% in October 2010.
Surprisingly, in the face of significant volatility beyond local borders, confidence is rising. Expected corporate earnings growth underpins this improvement, increased cash piles and reduced debt.
What is your perspective on the state of your local economy?
Employment outlook brightens
Despite some high-profile announced layoffs, 85% of the Ernst & Young 1,000 expects to maintain or increase their workforce over the next 12 months. There are some workforce reductions related to new and long-standing cost reduction programs, but companies are starting to reinvest for growth.
With regards to employment, which of the following does your company expect to do in the next 12 months?
| 90% | | of oil and gas and metals and mining sector respondents plan to create jobs or maintain their current workforce levels. |
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