U.S. business optimism drops in fourth quarter

Grant Thornton International Business Report cites economic uncertainty as the number one constraint to business growth in coming year.

Latest News

State of Logistics 2016: Pursue mutual benefit
California’s ports may face new political pressures during “Peak Season”
CEMA forecasts 7.5% growth in conveyor industry for 2017
Schneider National officially rolls out IPO
U.S.-NAFTA freight up again in January, reports BTS
More News

Latest Resource

The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
All Resources
By ·

Optimism for the nation’s economic outlook among U.S. business leaders plummeted 16 percentage points in fourth quarter 2013 to a net balance of 36% according to the latest data from the Grant Thornton International Business Report (IBR), a survey of 3,300 business leaders in 45 countries.

Hiring expectations in the United States declined for the first time in the past year, with a net balance of 38% of business leaders foreseeing an increase in hiring during the coming year, down from 42% the previous quarter. In addition, net 52% of business leaders expect profits to grow, a slight decline from 54%  the previous quarter and a substantial increase from 28% a year ago. U.S. business growth expectations actually improved, with net 65% of businesses expecting to see revenues climb during the next 12 months, up from 50% in third quarter 2013 and up from 38% from the same period last year. However, a net balance of 37% of U.S. businesses leaders cite economic uncertainty as the number one constraint to growing their operations in the next 12 months.

“It’s clear that the recent gridlock in Washington is significantly contributing to the lack of confidence in, and optimism about, our economy among the nation’s business leaders,” said Stephen Chipman, chief executive officer of Grant Thornton LLP. “Our nation’s political leaders were able to reach a budget agreement, which will likely avert another costly government shutdown and extend the sequester for the next two years. However, they must now turn their attention to embracing a long-term debt ceiling solution combined with comprehensive tax and entitlement reforms that would provide a level of economic certainty that businesses are desperately seeking.”

The notion that the government shutdown affected optimism about the economy correlates with other recent research from Grant Thornton LLP, which indicated that 60% of CFOs believe the state of the U.S. economy will remain the same or worsen during the next six months because of similar uncertainty.

The lack of optimism in the U.S. economy is consistent with what is occurring in other global markets. Global business optimism fell to a net balance of 27%, down five percentage points from third quarter 2013. Optimism among Chinese business leaders declined following a 27 percentage-point increase to net 31% in the previous quarter. In fourth quarter 2013, business optimism in the world’s second largest economy fell to a net balance of 22%.

Brazil business optimism also dropped significantly from a net balance of 31% to 10%, a record low for the IBR. Russian optimism declined from a net balance of 19% to just 1%, its lowest since 2011.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...