UK CEOs are more upbeat about the growth prospects for their own companies than 12 months ago, and more positive than their European peers, according to research from PwC published at the World Economic Forum in Davos
The firm’s 20th annual CEO Survey found that 89% of UK CEOs say they are confident of their company’s growth in the year ahead, up from 85% in 2016, and above the 85% global figure and 77% in Germany. In addition, 41% describe themselves as being ‘very confident’, eight percentage points higher than last year.
The majority (95%) are confident about their business’s growth prospects over the next three years, compared to 91% globally and 83% in Germany.
By contrast, only 17% of UK CEOs expect global economic growth to improve this year, down from 30% in 2016, and significantly below the 29% global figure. In fact, nearly a third (31%) expect the global economy to decline in the year ahead, up from 23% last year and compared to 17% globally, 14% in the US and 10% in Germany.
Most (84%) UK CEOs rank uncertain economic growth as the top economic, environmental or policy threat to company growth (compared to 82% globally). Their next biggest concern is exchange rate volatility (82% v 70% globally) and the future of the Eurozone (78% v 56% globally).
PwC’s survey of more than 1,300 global leaders, including 126 UK CEOs, reveals the UK is rising in popularity with overseas companies. Business leaders from 16 countries see the UK as more important than last year for their short term growth prospects. CEOs in the US, China, Germany and Switzerland are among those more enthusiastic about investing in the UK.
Overall, the UK is seen as the fourth most important country for growth, behind the US, China and Germany. London, alongside Shanghai, New York, and Beijing is identified by CEOs globally as one of the four most important cities for their organisation’s growth prospects.
The US remains the most important export market for UK CEOs, although Germany has leapfrogged China into second place.
PwC’s research found 91% of UK business leaders plan initiatives to drive organic growth during the coming year, compared to 79% globally, and 55% plan new M&A activity (41% globally).
In addition two thirds (63%) expect to grow their workforce over the coming 12 months, compared to 52% of their global counterparts. Just 10% expect headcount to decrease, down from 20% in 2016. Access to key skills is considered to be the single biggest business threat facing their organisations. More than four in five (83%) of UK bosses are concerned about how to get hold of key skills, up sharply from 71% last year, and compared to 77% globally.
