Young Presidents' Organization, Inc.

EU CEO confidence stays at record high as economic prospects pick up

LONDON - 1^st May 2014 - Confidence levels amongst CEOs in the European Union remained at a record high during the first quarter of 2014, according to a YPO survey of CEOs. Over the past six months, on the back of encouraging GDP growth forecasts and abating inflation, European CEOs have become more confident about economic and business prospects in the region than at any time in the five-year history of the survey. The YPO Global Pulse Confidence Index for the EU landed at 62.2 in April, unchanged from the January reading.

For a period of three years following the 2009 recession, business leaders in the European Union were consistently the most pessimistic in the world about short-to-medium-term economic conditions. In 2013, however, business confidence began to recover and now optimism in the EU is on a par with other regions around the world; the YPO Global Pulse global composite index is a mere 0.3 above the EU reading.

 

http://www.ypo.org/2014/05/chief-executives-still-upbeat-about-2014/eu

"This second consecutive strong reading in the results suggests that confidence in the region is on a sound footing and that business leaders across the EU, very importantly both in the core and the periphery, are shifting from a recessionary mindset to one of cautious optimism, as the recovery is still anaemic," said Anastasios Economou, managing director of iGroup and an executive member of YPO's Greater Europe Chapter.

Globally, low interest rates and continued recovery in developed markets in the first quarter of 2014 sustained CEO optimism. The YPO Global Pulse Confidence Index inched down half a point to 62.5. Confidence downturns in pockets of the emerging world contributed to the slight decline.

Key findings in the EU
Confidence bounces back in countries threatened by sovereign debt crisis: One of the most notable findings in the April survey was the rebound in confidence among the eurozone periphery economies hit by the 2009-2012 sovereign debt crisis. Confidence in both the core and periphery economies climbed during the first quarter but changed rank as the periphery (62.7) turned rosier than the core economies (59.8) within a context of falling sovereign debt yields in southern Europe.

The United Kingdom's confidence index, on the other hand, saw a 3.0-point drop, down from its record high in the fourth quarter of 2013 to a still-lofty 68.1.

Sales, employment and fixed investment forecasts hold steady: The latest findings showed little movement on the previous quarter when it came to predictions relating to sales, hiring and fixed investment. A majority (60%) of CEOs surveyed expected to increase sales over the next year, an encouraging indicator for continued expansion. However, only a third (33%) expected to increase headcount within their organisations, suggesting that unemployment will continue to be one of the most pressing challenges facing EU governments over the coming year.

Conditions set to improve further: CEOs in the EU predicted that the recovery would continue to gather steam over the next six months. Most survey participants (60%) anticipated further improvements in economic and business conditions over the next two quarters.

YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of April, gathered answers from 1,996 chief executive officers across the globe, including 194 in the European Union. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world.

About YPO
YPO (Young Presidents' Organization) is a not-for-profit, global network of young chief executives connected around the shared mission of becoming Better Leaders Through Education and Idea Exchange^TM. Founded in 1950, YPO today provides 20,000 peers and their families in more than 120 countries with access to unique experiences, world-class resources, alliances with top learning institutions, and specialised networks that help them enhance their business, community and personal leadership. Altogether, YPO member-run companies employ more than 15 million people around the world and generate US$6 trillion in annual revenues. For more information, visit www.ypo.org. Also see us on Facebook and follow us on Twitter.

# # #

YPO (Young Presidents' Organization)
Michèle Foster
+33.9.7044.0704 (Europe)
[e-mail]

---

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Young Presidents’ Organization, Inc. via Globenewswire

HUG#1781497