You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Economy

  • March hiring up in 34 states
    More than two-thirds of the states reported job gains in March, as hiring has improved for much of the country during what has been a sluggish but sustained 4 1/2 -year recovery.
  • Yellen’s tightrope walk in first Q&A as Fed chair
    At her first news conference as Federal Reserve chair, Janet Yellen had a message for the financial world: The U.S.
Advertisement

Anxiety clouding meeting of CEOs

Growth hopes fade as new year dawns

– As high-powered CEOs flock to the snowy Swiss resort of Davos, they are loaded down with baggage – not just skis and iPads but concerns about the global economy, public mistrust, disappearing jobs and a heap of other challenges.

New survey results Tuesday showed a steady drop in the number of CEOs worldwide who are “very confident” that their companies will grow this year. The number fell from 48 percent in 2011 to 36 percent this year.

Amid this pessimism, most of them are carefully sticking to a few investments in tried-and-true markets, according to the survey by accounting firm PricewaterhouseCoopers.

“Most are saying that the global economy will stay about the same for the next 12 months. So, not encouraging, maybe not discouraging, but clearly that’s affecting their outlook for their own companies’ growth prospects,” PwC Chairman Dennis Nally told The Associated Press.

“The degree of confidence across the board is really down, regardless of whether you’re in a developing market or a developed market,” he said.

It is down even in high-flying economies like China and Brazil. The most upbeat country was Russia, where 66 percent of CEOs are “very confident” of revenue growth in 2013, Nally said.

He called the survey results a strong message to governments that they must fix economic problems, including disputed regulations, government deficits and tax issues.

“All of those are impacting CEOs’ levels of confidence to really deal with their businesses on a go-forward basis,” he said in the PwC Lounge, an ultra-chic Davos party room with white sofas and chairs and orange and red flowers.

Uncertainty about tax and spending policies is at the root of the gloom, said John Veihmeyer, CEO of accounting firm KPMG’s U.S. operations.

He called it frustrating that U.S. government solutions “seem to be within our control” but still out of reach.

“I think we have an opportunity for the U.S. to lead the world onto a path of stronger economic footing and very robust economic recovery over the next five years,” Veihmeyer said. “It’s not going to be easy. There’s going to be pain and sacrifice.”

Nearly a quarter of the CEOs surveyed plan further job cuts – yet more than half of them say they have trouble finding people with the right job skills.

Advertisement