The Global Business Barometer improved for the second straight month, with the 3-month outlook for many industries moving from "much" to "somewhat" worse

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LONDON, Aug. 6, 2020 /PRNewswire=KYODO JBN/ --

- Executive sentiment about the three-month outlook for the global economy rose

to -16.8 from -27.7 in May  (out of a range of -50 to +50)

- China is the first economy covered by the barometer to tip into positive

territory, registering a reading of +2.0  

- Only 8.1% of respondents strongly agree that their country is ready to open

and 6.7% strongly agree their company is ready to return to normal operations

Economic recoveries from crises such as the covid-19 pandemic come in many

shapes. The hope everywhere is always that they will be V-shaped, but Us are

the next best thing. Volatile Ws and the dreaded L are the worst-case

scenarios. The latest Global Business Barometer, based on a survey and analysis

conducted by The Economist Intelligence Unit and supported by SAS, shows that

as of late June the possibility of U-shaped recovery remains possible.

Ticking closer to positive: The overall barometer reading for the global

economy reached -16.8, the closest it has been to positive territory yet.

Respondents in Latin America and the Asia Pacific led the way, with +18.5 and

+4.0 improvements respectively. Sentiment about the global and regional

economies in North America barely budged from the previous barometer, rising by

+1.5 and +0.2 points, making it the most pessimistic on both accounts.

China, the first economy to turn positive: The three-month outlook for the

Chinese economy among China-based executives tipped into "somewhat better" in

June, though only just at +2.0. This still makes it the first economy to do

since the GBB began in April. The change in sentiment is in stark contrast to

the last GBB when the outlook there soured by -21.9, by far the most among the

twelve main economies surveyed.  

The road, less traveled:. Only 8.1% of respondents to the June GBB survey

"strongly agree" that their country is ready to open and only 6.7% "strongly

agree" that their company is ready to return to operating as it had done before

the pandemic. Those figures are chilling whether you read them as recognition

of the scale and scope of the problem or an indictment of global and

country-level responses to covid-19 (or some combination of the two). For them

to improve will require more leaders and policymakers around the world to

demonstrate to everyone that they can be more effective in containing the virus.

About the research

The Global Business Barometer [https://globalbusinessbarometer.economist.com/?utm_source=PR&utm_medium=Phase%203&utm_campaign=GBB%20Phase%203 ]

gauges sentiment towards current events and financial market uncertainty and

explores how businesses are coping today and planning for the future.

About The Economist Intelligence Unit

The Economist Intelligence Unit is the thought leadership, research and

analysis division of The Economist Group and the world leader in global

business intelligence for executives. We uncover novel and forward-looking

perspectives with access to over 650 expert analysts and editors across 200

countries worldwide. More information can be found on

www.eiuperspectives.economist.com.

Follow us on Twitter [https://twitter.com/TheEIU ],

LinkedIn [https://www.linkedin.com/company/the-economist-intelligence-unit/ ] and

Facebook [https://www.facebook.com/TheEIU ].

About SAS

SAS [http://www.sas.com/recover ]is the leader in analytics. Through innovative

software and services, SAS empowers and inspires customers around the world to

transform data into intelligence. SAS gives you THE POWER TO KNOW(R).

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Source:  The Economist Intelligence Unit