Daily Management Review

Optimism Towards Economic Outlook Rose In The Third Quarter


The third quarters of 2015 saw an increasing optimism in the economic outlook of the U.S business leaders.

There has been lot of optimism among the U.S. business leaders regarding the “economic outlook” of the country, whereby the same increased by “20 percentage points” and touched bay at net seventy four percent balance. The positive turn came about in the “third quarter” of 2015. However, this has been marked the second time of upward turn after the year of 2004 as per the data provided by “Grant Thornton International Business Report”, whereby sevety percent of the economic growth was eclipsed.
After conducting a survey which included over “2,500 business leaders in 36 economies”, it was determined that U.S. holds the fifth rank in being “most optimistic economy overall”. However, there has been a drop in the “business optimism” whereby it came down to “net 38 percent” from “net 54 percent” which has been applicable throughout the “European Union”, while in the eurozone it touched bay at “net 33 percent” from “net 54 percent”. Moreover, BusinessWire informs:
“Confidence in China, the world’s second-largest economy, decreased to net 26 percent, down 20 percentage points from the previous quarter. Globally, net 38 percent of businesses are optimistic, down from net 45 percent last quarter, with the most confident businesses in Ireland (net 90 percent), India (net 87 percent), the Philippines (net 86 percent) and Nigeria (net 76 percent)”.
Even though, worldwide the analysts could not find steady grounding on their confidence level, the business leaders of the U.S. never lost their optimism. Consequently, in the third quarter of 2015 the country became the fifth one on global “optimistic economic” list, “partially” thanks to the growing plans of investing in the sector of “research and development” along with export sector also. The Grant Thornton LLP’s Chief Executive Officer Mike McGuire says:
“While China dominated the global business headlines, American business leaders may not have been fazed by the news, according to our study. Despite currency devaluation in China, confidence among U.S. business leaders continued to rise, and the spending in R&D and the growth in exports are evidence of that. However, there’s some less-encouraging news in the fact that long-term investment decisions are still on hold. A majority of those surveyed are still hesitant – optimistic, but hesitant.”
Nevertheless, leaving aside the business leaders of the country, other sectors still continue to perform the same way with ‘relatively unchanged’ stability. There are plans among the U.S companies to “invest in new buildings in the next 12 months remained stagnant at net 26 percent in third quarter 2015”. As per BusinessWire writes:
“...plans to invest in plants and machinery increased just 2 percentage points to net 22 percent. Revenue expectations among U.S. business leaders remained net 70 percent in third quarter, while profitability expectations decreased 9 percentage points to net 56 percent”.


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