YPO Global Pulse Survey: CEO confidence in Latin America hits two-year high
SÃO PAULO, Brazil, Nov. 01, 2016 (GLOBE NEWSWIRE) -- YPO business leaders in Latin America reported increased levels of economic confidence during the third quarter of the year. The YPO Global Pulse Index for Latin America, which tracks economic confidence levels among chief executives in the region on a quarterly basis, climbed 1.5 points to 55.9, its highest level since October 2014.
The upturn in sentiment was mainly driven by a positive outlook amongst chief executives in Brazil, reflected by a surge in the confidence index of 7.7 points, from 48.9 to 56.6. Languishing at 38.2 one year ago, in deeply pessimistic territory, Brazil reported its fourth consecutive increase in business confidence, now at its highest level since January 2014. The improved outlook coincides with a steady recovery in oil prices and the successful Olympic and Paralympic Games in Rio de Janeiro. However, not all countries in the region reported increases in economic confidence during the third quarter. Colombia dropped 2.0 points to 57.9, although still at a relatively positive level, and Mexico slipped 3.9 points to 54.9. The recovery in oil prices and the afterglow of the Rio Olympics has improved the outlook for business leaders in Brazil, said Tony Ramos, Executive President of Prin and the Regional Chair of YPOs Latin America Region. CEOs across Latin America will remain cautious about business conditions, both within the region and at a global level, but they will be looking for growth and investment opportunities as the economic recovery starts to gather pace. Globally, the YPO Global Pulse Index for the third quarter of 2016 fell by half a point to 59.2. The highest levels of confidence were reported in the European Union, which climbed 2.2 points to 60.7. Close behind was the United States, where confidence remained stable in the third quarter, edging down 0.4 point from 60.8 to 60.4. Asia fell 2.9 points to land at 60.0, as the worlds three largest economic regions reported confidence levels within one point of each other. Elsewhere, confidence in the Middle East and North Africa fell 2.0 points to 53.9, making it the most pessimistic region in the world. Africa reported a more positive outlook, climbing 1.7 points to 55.5, its highest level since July 2015. Key findings in Latin America Sales and investment outlook improves, whilst employment slips Business leaders in Latin America reported increased levels of confidence in two of the three main indices of the YPO Global Pulse survey: sales and fixed investment. The YPO Sales Index for Latin America climbed 1.0 point to 62.8, whilst the YPO Investment Index gained 1.8 points to 56.7. However the outlook for hiring was less positive, with the YPO Employment Index for Latin America falling 1.0 point to 51.5. Economic conditions expected to improve further Business leaders in Latin America reported that the economic and business will improve over the next six months. Almost half (48%) of chief executives expected economic conditions to get better over this period, a significant upturn from the second quarter of the year when only 39% forecasted an improvement in conditions. Less than a quarter (19%) of CEOs predicted that the economic climate would deteriorate, compared with 32% in the previous survey. Key findings in Brazil Chief executives bullish about prospects over next 12 months Brazilian CEOs reported drastically increased levels of confidence about the prospects for their own organisations over the next year. Almost three-quarters (73%) of business leaders forecasted revenue growth over the next 12 months, a significant jump from the previous quarter when only 39% reported that they expected to increase their turnover. In regards to hiring, 18% of respondents expected to increase headcount over the next year, with the vast majority (73%) forecasting the same level of staff. Only 9% predicted a cut in the size of their workforce, compared with 20% in the previous quarter. YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of October 2016, gathered answers from 1,625 YPO chief executive officers across the globe, including 119 in Latin America. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world. About YPO
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