The number of UK CEOs expecting the global economy to improve over the coming year has more than doubled, according to a PwC survey published at the World Economic Forum in Davos
A third (36%) of UK business chiefs believe global economic growth will improve, compared to 17% in 2016, the most confident they have been since 2015. PwC’s research was based on 1,293 interviews with CEOs in 85 countries, including 193 in the UK.
Most (88%) of UK CEOs are optimistic about their organisation’s growth prospects for the next 12 months, in line with their global counterparts (87%). Given Brexit negotiations only recently reached a significant milestone, PwC says it is unsurprising that the number of UK business leaders who describe themselves as ‘very confident’ has dipped to 34% from 41% last year.
Confidence among business leaders is even higher about growth prospects over the next three years, with 96% expecting their revenue to increase - higher than the global figure of 91%. This may reflect comfort in the prospect of a two-year Brexit transition period, despite uncertainty over the outcome of trade negotiations, the firm says.
Despite Brexit uncertainty, global CEOs identify the UK as the fourth most important country for their businesses’ growth, behind the US, China and Germany. For UK CEOs, the US remains the top overseas market, followed by Germany and China.
UK and global CEOs share the same top two concerns about the biggest economic or policy threats to their company’s growth - geopolitical uncertainty (83% UK; 85% globally) and over-regulation (80% UK; 83% globally). This is a change to 2017 when UK business chiefs viewed uncertain economic growth and exchange rate volatility as their top two concerns.
Two thirds (69%) of UK CEOs agree that emerging technology and automation will disrupt their business over the next five years.
Ensuring they can attract and develop the right talent is a top priority for 83% of UK CEOs, compared to 80% globally, while 77% say they are improving compensation and benefit packages to attract or develop people with digital skills.
Kevin Ellis, chairman and senior partner of PwC, said: ‘Robust confidence levels among UK CEOs points to resilience in uncertain times, but this is tempered by a big dose of realism about the challenges ahead. Brexit uncertainty, regulation, availability of skills and cyber are key concerns but business leaders remain confident they can navigate through them.’
PwC’s 21st CEO survey is here.
Report by Pat Sweet
