Bullish View on Global Economy Sharred by Top U.S. Executives

By SCMR Staff
July 28, 2014 - SCMR Editorial

Optimism for the nation’s economic outlook among U.S. business leaders continued to rise from first quarter 2014, according to the latest data from the Grant Thornton International Business Report (IBR), a survey of more than 3,300 business leaders in 45 countries.

In second quarter 2014, optimism among U.S. business leaders rose eight percentage points to a net balance of 74%, marking the highest level since 2004.

The increase in optimism in the United States is consistent with what is occurring globally. In second quarter 2014, optimism among global business leaders rose two percentage points to a net balance of 46%. This marks the highest level in the survey’s history, and a 19% increase from one year ago.

The notion that U.S. business optimism is on the rise correlates with other recent research from the Grant Thornton LLP 2014 Spring CFO Survey.

The survey indicated that, for the first time since 2006, more CFOs believe the state of the U.S. economy will improve (51%) rather than remain the same or worsen (49%) during the next six months. This also marks the highest percentage in that survey’s history.

“Following a strong first quarter, business leaders across the globe continue to show levels of confidence we have not seen in more than a decade,” said Stephen Chipman, chief executive officer of Grant Thornton LLP. “The increase in optimism, coupled with recent improvements in key economic indicators may finally provide business leaders the confidence to invest in their businesses, create jobs and grow their operations in the coming months.”



IBR data reveals G7 business optimism rose to a record high net 53%, up from 28%in fourth quarter 2013. Optimism in the European Union, driven by Germany (79%), the United Kingdom (80%) and Ireland (84%), rose six percentage points to a net 43%, marking its highest level since 2007.

While optimism in the European Union and G7 economies both reached record highs, BRIC business optimism dropped four percentage points to a net balance of 36%.

Optimism in China, the world’s second largest economy, also dropped in second quarter 2014. Chinese business optimism decreased to a net balance of 30%, an eight percentage-point decrease from last quarter, but a substantial increase from net 4% one year ago. Additionally, Japanese business optimism decreased to a net 5%, down from 17% in the previous quarter



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!

Recent Entries

An export rebound continues to build steam at the Port of Oakland, as it also continues to ease drayage congestion with innovative logistics management strategies.

Asset-light transportation and logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has expanded its less-than-truckload (LTL) service through the addition of outbound service from Vancouver, British Columbia. RRTS said that this service will open the western half of Canada to its LTL Freight’s outbound service.

Carloads saw a 16.1 percent, or 180,598, annual decline at 944,339, and intermodal containers and trailers in April at 1,972,828, were off 11.8 percent or 264,327 carloads annually.

Total intermodal volume movements—at 4,156,999—were up 2.0 percent annually and outpaced the 0.3 percent annual growth rate from the fourth quarter of 2015.

Industry analysts contend that the Teamsters are not declaring a strike outright, but rather, voting to give their leadership permission for such an action.

Article Topics

News · Global · Economy · BRICS · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.