Better off than Europe

UK CEOs are more optimistic about their companies’ fortunes than their European counterparts, finds research. Almost 80% are upbeat about revenue growth in the next year compared with 64% across Europe, according to PricewaterhouseCooper’s annual global survey of more than 1,200 companies. While only 29% are ‘very confident’ of growth in the next 12 months, 46% are very confident over the next three years and at least 92% ‘somewhat confident’ of growth over three years.

Overall, UK business leaders say the outlook for global economic conditions remains challenging, with 89% of UK CEOs believing they will not improve, or decline further in 2012.

Ian Powell PwC

Ian Powell, PwC chairman says: “Our prognosis is that CEOs should expect the current pattern of volatile financial markets and relatively slow growth in western economics to continue. The challenge for the UK CEO is ensuring that their companies remain flexible, maintain cost controls and restructure to adapt to this slower growth environment.’

UK CEOs say their best chance for growth in the next 12 months is more likely to come from increasing their share in existing markets, with less than a quarter (22 per cent) looking for growth from new products or services, and 18 per cent from new geographic markets.

Powell adds: “Growth opportunities still exist, particularly in faster growing emerging market economies and where new technology is opening up possibilities – in areas as diverse as online retailing and low carbon energy. The challenge now is to ensure that the experience of slower growth in traditional markets and the uncertainty created by more volatility does not prevent them taking advantage of these areas of new opportunity.”

APA