YPO Global Pulse: CEOs in Europe unconcerned by Greek crisis

EU business confidence remains strong despite uncertainty LONDON - 4(th) August 2015 - Confidence remained high amongst CEOs across the EU in the second quarter of the year, despite the ongoing difficulties affecting Greece. The YPO Global Pulse Confidence Index for the EU slipped marginally to 61.6 from its record high of 62.5 in the first quarter of 2015. Unsurprisingly, business confidence in Greece crashed dramatically in the second quarter, plummeting 18...

EU business confidence remains strong despite uncertainty
 

LONDON - 4^th August 2015 - Confidence remained high amongst CEOs across the EU in the second quarter of the year, despite the ongoing difficulties affecting Greece. The YPO Global Pulse Confidence Index for the EU slipped marginally to 61.6 from its record high of 62.5 in the first quarter of 2015.  

Unsurprisingly, business confidence in Greece crashed dramatically in the second quarter, plummeting 18.1 points to 40.7, its lowest level since the midst of the previous sovereign debt crisis in January 2012. However, unlike on previous occasions when eurozone economies have been close to the brink, this time the fear and uncertainty has not spread more widely across the region, indicating that efforts to isolate and downplay the potential impact of the Greek crisis have been successful.

For the second consecutive quarter, confidence in the EU exceeded the global composite level, which came in at 60.9, having previously trailed the global average throughout the six-year history of the survey. Once again, EU business leaders were the third-most positive in their outlook when compared to other regions, trailing only their counterparts in the United States, which landed at 62.8, and Asia, which came in at 62.0.

"These results suggest that the recent upturn in confidence in Europe is based on an improving real economy situation in most of Europe that can withstand pressures being felt in individual smaller economies," said Anastasios Economou, founder of iGroup and chair of the YPO Europe region. "Whilst CEOs will remain cautiously optimistic, continuing to monitor key economic indicators, there is a sense that growth is set to pick up over the next six months, whatever the outcome of the situation in Greece."

Key findings in the EU

Confidence levels dip slightly across region: The second quarter saw confidence levels drop in most of the major EU economies. Italy fell 3.5 points to 58.1, France declined 3.6 points to 57.6, and Germany slipped 4.7 points to 56.1. Outside of the eurozone, the United Kingdom fell 3.4 points to 65.3, still in firmly optimistic territory, above the 60-point mark.

Interestingly, business leaders in Spain, a country that has faced its own sovereign debt-based challenges over the past few years, remained unmoved by the situation in Greece, with confidence actually climbing 0.8 point to 66.4.

CEOs still optimistic about immediate outlook: Whilst overall there was a slight decline in confidence in the EU region, business leaders remained for the most part extremely positive about the immediate economic environment. More than half (51%) expected the business and economic conditions affecting their organisation to improve in the next six months, although 15% expected conditions to worsen (up from 7% in the previous quarter).

When it came to the individual components of the YPO Global Pulse Index, tracking sales, employment and fixed investment, CEOs were also positive. Sixty-two percent of respondents expected to grow revenues in the next twelve months, 33% expected to increase headcount, and 39% expected increased levels of fixed investment within their organisations.

YPO Global Pulse Confidence Index

The quarterly electronic survey, conducted in the first two weeks of July 2015, gathered answers from 2,127 chief executive officers across the globe, including 193 in the European Union. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world.

About YPO

YPO (Young Presidents' Organization) is a not-for-profit, global network of young chief executives connected through the shared mission of becoming Better Leaders Through Education and Idea Exchange^TM. Founded in 1950, YPO today provides 23,000 peers and their families in 130 countries with access to unique experiences, extraordinary educational resources, access to alliances with leading institutions, and participation in specialised networks to support their business, community and personal leadership. Altogether, YPO member-run companies employ more than 15 million people around the world and generate US$6 trillion in annual revenues. For more information, visit www.ypo.org.  

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[email protected]

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