YPO Global Pulse Survey

EU business confidence edges down from eight-year high

YPO chief executives in EU still optimistic about economic conditions; outlook in non-EU Europe down slightly in third quarter

LONDON, Nov. 07, 2017 (GLOBE NEWSWIRE) -- YPO, the premier chief executive leadership organisation in the world, announced today that the YPO Global Pulse Confidence Index for the EU slipped 1.2 points to 61.8, down from its record level of 63.0 in the previous quarter, and slightly below the global composite score of 62.4.

The slight drop in EU confidence was mainly triggered by a more subdued outlook in three of the region's major economies, Germany, France and Spain. Germany declined 4.2 points to 58.5, and Spain slipped 4.3 points to 65.1, its lowest level since July 2016, and, following President Macron's victory in the general election, economic confidence in France fell 4.1 points to 60.6, reversing the 10.2-point rise in confidence it reported in the second quarter.

In other countries, there was little change in outlook. The United Kingdom remained steady with a score of 61.6, despite an apparent lack of progress in the ongoing Brexit negotiations. It was a similar story in Malta, which dropped less than one point to 64.8.

"It's probably no surprise that there is a slightly more cautious outlook in the EU, given the social and political uncertainty that is being experienced in some countries, such as the Catalan situation in Spain and the election results in Germany. However, despite this, chief executives in Europe remain positive about the strength of the economy and prospects for growth," said YPO member and President of Zenato, Nadia Zenato. "Business leaders will be looking for opportunities to expand as we move into 2018, while closely monitoring local and global economic performance indicators."

Non-EU Europe also saw a slight dip in confidence, dropping 1.7 points to 58.6. This was mainly due to a more subdued outlook in Switzerland, which fell 4.4 points to 57.5. This is against a background of the effects of a strong Swiss Franc on the Swiss export economy, as well as lackluster private and government consumption. On the other side of the scale, confidence in Turkey spiked 7 points. This coincides with stronger-than-expected economic growth in the country, and the International Monetary Fund (IMF) sharply increasing its GDP forecast for Turkey to 5.3% from 2.5% for 2017.