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Economic Conditions Snapshot, June 2009
McKinsey Global Survey Results
J e a n- F r a n ç oi s M a r t i n
Executives have become notably more optimistic about their companies’ and theircountries’ economic prospects since mid-April—but the outlook was so poor then that optimism must be tempered.
Over the past six weeks,
executives have become markedly more optimistic aboutcurrent economic conditions and prospects or their national economies, a newMcKinsey survey shows.
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Expectations started out so gloomy, however, that even now,ewer than a third expect an economic upturn this year, and two-thirds expect theirnations’ GDPs to decrease in 2009.Similarly, at the company level, more executives still expect to shed workers than to hire,but the share expecting to decrease the workorce has allen below hal or the frst timesince January. And a ull third o respondents now expect profts to increase in 2009, up8 percent in six weeks. Furthermore, even though respondents see allout rom the crisisin a variety o fnancial and nonfnancial measures such as employee morale and the paceo innovation, strong majorities expect those eects to be short-lived.
More hopeful executives
The share o executives who say their countries’ current economic conditions are betterthan they were in September 2008 has more than doubled since mid-April, and theproportion who expect conditions to improve by the end o the year now stands at 39percent (Exhibit 1). Nonetheless, only 28 percent expect an economic upturn in 2009,and the share o those expecting their countries’ GDPs to decrease has allen onlyslightly, to 67 percent.
Economic Conditions Snapshot:June 2009
McKinsey Global Survey Results:
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The online survey was in the feldrom June 2 to June 8, 2009,and generated responses rom1,404 executives around theworld, representing all industries,regions, and unctional specialties.
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