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Global business confidence rebounds at start of 2012 – KPMG

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World businesses are gaining more confidence as the global economy sees some level of improvements at the start of 2012, a KPMG survey has revealed.

The auditing firm’s latest Business Outlook survey known as ‘Pulse’ and released late March 2012 indicated renewed business optimism due to forecast growth over the next 12 months. “A jump in worldwide optimism resulting from improved global economic conditions has businesses preparing for growth in the coming months,” said KPMG in a press release.

KPMG believes companies are “planning for higher levels of investment, greater activity and increased staffing” and “this renewed outlook sharply contrasts the lows experienced by the global market in late 2011”.

The survey results also showed that around 42% of manufacturers anticipate output growth during the coming months, an improvement from the previous Pulse survey (conducted in October 2011), where only 27 percent of firms surveyed predicted growth.

For the service sector, KPMG approximates that about 45% of companies are anticipating higher activity in a year’s time.

Commenting on the latest survey findings, Mark A. Goodburn, Global Head of Advisory for KPMG International said, “It would seem that the dark cloud expressed at the close of last year has lifted. While the Euro-zone crisis is far from over, globally, businesses feel as though it is at least under control. Additionally, strong gains in the US economy have further bolstered positive sentiment. It is apparent that markets are still vulnerable and businesses will proceed with caution, but considering the data, there is definite reason to be optimistic.”

Over the next 12 months, global price pressures are expected to rise moderately contributing to a slight upward revision in the forecast rate of services output charge inflation, the company stated.

By Ekow Quandzie

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