According to EY’s 14th Global Capital Confidence Barometer, a somewhat shaky start to 2016 combined with an uncertain outlook have substantially lowered economic expectations among prominent UK business leaders, but their appetite for deals is at the highest level recorded.
Driven by fears over global growth, a plummeting oil price and divergent monetary policies, just 27% of UK executives interviewed fully expect a modest or strong improvement in the global economy. That’s down from a highly positive 94% six months ago.
According to the EY Barometer, UK economic expectations have also fallen significantly from 69% expecting a modest or strong improvement six months ago to just 8%. UK respondents now see economic and political uncertainty in the EU (27%) and commodity and currency volatility (27%) as the two greatest risks to their business in the next six-to-12 months.