Global Business Barometer April 2008

economist

Global Business Barometer April 2008

Global Business Barometer

April 2008

The Global Business Barometer is a quarterly business-confidence index,

conducted for The Economist by the Economist Intelligence Unit


What are your expectations of global business conditions

over the next six months?

Better than current conditions

Same as current conditions

Worse than current conditions

15%

36%

48%

0 10 20 30 40 50 60 70 80 90 100


What are your expectations of business conditions in your country

of residence over the next six months?

Better than current conditions

Same as current conditions

Worse than current conditions

21%

39%

41%

0 10 20 30 40 50 60 70 80 90 100


What are your expectations of business conditions in your industry

over the next six months?

Better than current conditions

Same as current conditions

Worse than current conditions

24%

35%

41%

0 10 20 30 40 50 60 70 80 90 100


IT and technology

Professional services

Financial services

Manufacturing

Healthcare, pharmaceuticals and biotechnology

Energy and natural resources

Telecoms

Consumer goods

Entertainment, media and publishing

Construction and real estate

Transportation, travel and tourism

Automotive

Chemicals

Retailing

Agriculture and agribusiness

Education

Logistics and distribution

What is your primary industry?

4%

4%

4%

3%

3%

3%

3%

2%

2%

2%

7%

7%

6%

11%

10%

14%

14%

0 10 20 30 40 50 60 70 80 90 100


What are your organisation's global annual revenues in US dollars?

$500m or less

$500m to $1bn

$1bn to $5bn

$5bn to $10bn

$10bn or more

Not applicable

4%

6%

9%

13%

22%

46%

0 10 20 30 40 50 60 70 80 90 100


Which of the following best describes your title?

Board member

CEO/President/Managing director

CFO/Treasurer/Comptroller

CIO/Technology director

Other C-level executive

SVP/VP/Director

Head of Business Unit

Head of Department

Manager

2%

6%

5%

5%

9%

15%

12%

24%

23%

0 10 20 30 40 50 60 70 80 90 100


In how many countries does your organisation operate,

including the country of headquarters?

1

2 to 5

6 to 10

11 to 25

More than 25

10%

10%

16%

29%

34%

0 10 20 30 40 50 60 70 80 90 100


In which country are you personally based?

United States of America 14.4 % South Africa 1.0 % Chile 0.3 %

United Kingdom 11.1 % Malaysia 0.9 % Czech Republic 0.3 %

India 8.9 % Taiwan 0.8 % Finland 0.3 %

Canada 5.6 % Hong Kong 0.7 % Latvia 0.3 %

Germany 4.0 % Indonesia 0.7 % Pakistan 0.3 %

China 3.7 % Bulgaria 0.6 % Uruguay 0.3 %

Italy 3.7 % Greece 0.6 % Egypt 0.2 %

Australia 3.1 % Norway 0.6 % Hungary 0.2 %

Switzerland 2.9 % Poland 0.6 % Kenya 0.3 %

France 2.8 % Thailand 0.6 % Panama 0.2 %

Netherlands 2.8 % Belgium 0.5 % Peru 0.2 %

Singapore 2.8 % Denmark 0.5 % Romania 0.2 %

Spain 2.8 % Nigeria 0.5 % Slovakia 0.2 %

Brazil 1.9 % Portugal 0.5 % Syria 0.2 %

Mexico 1.6 % Turkey 0.5 % Venezuela 0.2 %

Russia 1.4 % Vietnam 0.5 % Bahamas 0.1 %

Austria 1.3 % Ireland 0.4 % Belarus 0.1 %

Japan 1.2 % Israel 0.4 % Belize 0.1 %

Colombia 1.1 % New Zealand 0.4 % Bolivia 0.1 %

Sweden 1.1 % Slovenia 0.4 % Cambodia 0.1 %

United Arab Emirates 1.1 % Ukraine 0.4 % Congo 0.1 %

Argentina 1.0 % Bahrain 0.3 % Other countries 2.5 %


Global Business Barometer

by geography

Global

conditions

Country

conditions

Industry

conditions Index

Change on

previous

quarter

All regions -33.0 -20.0 -10.6 -21.2 -19.4

North America -30.8 -44.0 -13.2 -29.3 -11.5

Asia Pacific -38.0 -3.3 -10.1 -17.1 -30.2

European Union -28.6 -28.0 -10.2 -22.3 -26.9

Latin America -52.0 -12.0 -17.3 -27.1 -35.3

BRICs (Brazil, Russia,

India, China) -38.6 7.6 -6.3 -12.4 -30.4


Global Business Barometer

by industry

Global

conditions

Country

conditions

Industry

conditions

Index

Change on

previous

quarter

All industries -33.0 -20.0 -10.6 -21.2 -19.4

Financial services -46.8 -26.6 -35.8 -36.4 -18.9

Professional services -27.2 -17.3 -3.5 -16.0 -13.1

IT & technology -23.1 -18.3 -8.8 -16.7 -35.1

Manufacturing -34.4 -15.0 -12.0 -20.5 -12.6

Entertainment, media & publishing -25.7 -30.8 -28.2 -28.2 -25.3

Healthcare, pharmaceuticals &

biotech -45.9 -24.3 -20.3 -30.2 -20.5

Construction & real estate -34.2 -15.8 -7.9 -19.3 5.1


Sample and methodology

This survey was conducted between mid-March and mid-April 2008. In total, 1,017

executives replied to the survey from a spread of industries, countries and company

sizes. Respondents were drawn from the Economist Intelligence Unit’s panel of global

executives and from the readership of Economist.com. More than 40% were board-

level managers and just over half worked for companies with more than $500m in

annual revenues. The principal industries represented were IT and technology,

professional services, financial services, and manufacturing. America provided the

greatest number of respondents, with 143 respondents; the G7 and the BRIC countries

accounted for 11 of the top 18 countries.

The methodology for calculating the global business barometer is taken from the

OECD’s 2003 handbook on business confidence surveys. Respondents must answer

three questions about their expectations for future business conditions, each of which

has three possible replies: better (+), same (=) and worse (-). The (-) percentage is

subtracted from the (+) percentage for each question to give a net balance. The net

balance is then averaged across each of the three questions to create a single index

number. The results of the next barometer are due in June 2008.

More magazines by this user
Similar magazines