Global investment set to climb to post-crisis high
THE OUTLOOK for investment and employment globally is now at its strongest level since the financial crisis, with the UK’s rapid return to growth standing out particularly among advanced economies.
Around the world, business optimism in general is at a two-year high, and stronger confidence is manifesting itself as firms intend to invest and hire a larger workforce, according to Markit.
“The UK’s growth surge meanwhile shows no sign of abating, with business intentions for the year ahead not only the highest seen over the past five years but also higher than any other major developed country,” said Chris Williamson, Markit’s chief economist.
The boost to confidence is driven almost entirely by recoveries in the US, Japan and UK, as well as the end of the Eurozone’s recession. In contrast, firms in emerging markets are still struggling to gain traction. Russian and Indian business confidence is at the lowest level that the survey has ever recorded, and sentiment is still relatively weak in China and Brazil.
US firms reported the strongest capital spending intentions on record to Markit. In Japan, optimism is unchanged from late in 2013, despite business concerns over the upcoming sales tax hike.