Global business confidence has been badly hit and shrank to its lowest level during the five years period, as reported by the survey taken from 6100 companies.
However, the majority of the respondent firms believed that the business practices will get a boom in upcoming years rather those who expected it to be declined by almost 28%.
The net profit measured from all the observations were set to lower than 39 % in comparison with the June and the undermost since the business outlook report published by Markit in early stages of 2009. The capital investment and hiring were also decreased as a result of financial losses.
This is the most assertive situation experiencing by the global economic activities, which portray the horrible picture of business environment since the occurrence of economic downturn took place, stated by the senior economist, Chris Williamson, in a statement of Markit report.
Checklist for the Biggest Concerns:
The major reasons for declining growth trends in business confidence are based on various concerns highlighted in the report include:
The menace of downturn replication in euro region, the influence of higher interest marking in both UK and US, alongside the geo-political conflicts among Ukaraine and Middle East have severely dipped the global business confidence.
Moreover, the primary component for economic slump during recent periods is due to lack of benchmark performance given by emerging states, and this disappointment will grow further and expected to overcome in year ahead. Mr Williamson mentioned that business confidence in BRIC countries has been dropping to its least position since the occurrence of financial crunch.
Russia is playing a biggest part in raising the concerns in building global business optimism as the economy is encountered with various sanctions, wavering currency and different uncertainties have led the all the business activities down to the least level.
Major Optimistic
Despite from the darkest side, there are some positives such as according to report, UK companies are considered as very much positive for the upcoming year relatively to all other countries surveyed in last October.
It shows, there will be pleasing impacts over the business activities apart of the Manufacturing and services, which has been experiencing downwards trend since the mid the 2013. Moreover, the companies operating in UK are among those economies which are optimistic about prospective hiring plans.According to Williamson, the UK will certainly outpace its peer economies in terms of gaining business optimism by the end of 2015.
