PARIS--(BUSINESS WIRE)--Business confidence bounced back within France over the first quarter of 2015, with French CEOs now more optimistic about the economic environment since the second quarter of 2011.
With continued low commodity prices and the European Central Banks’s significant quantitative easing package, the YPO Global Pulse Confidence Index for France climbed 9.1 points in the first three months of the year to land at 61.2. The rise was driven largely by a significantly more positive sales outlook, with almost two-thirds of CEOs (64%) expecting to increase revenues by at least 10% in the year ahead.
Across the European Union, CEOs remained positive about the prospects for their organisations and the wider business environment. The YPO Global Pulse Confidence Index for the EU climbed 1.3 points to 62.5, matching the record high that it achieved in the second quarter of 2014.
For the first time in the Global Pulse Index’s six-year history, EU confidence is now higher than the global composite level of 61.5, and only marginally below the world’s two most optimistic regions, Asia, which landed at 63.6, and the United States, which came in at 63.3.
“After a challenging few years in Europe, the Global Pulse results indicate that France is experiencing an upturn in economic confidence, thanks to continued low fuel prices, favorable economic policies and the continued devaluation of the euro,” said Thierry Deau, CEO of Meridiam Infrastructure and a member of the YPO Paris Chapter. “Business leaders in France will likely remain cautious throughout the next year, aware of the many threats to sustained economic growth.”
The YPO Global Pulse Confidence Index declined 1.0 point in the April 2015 survey to 61.5 from 62.5. The global index continues to track closely to its peak level for the cycle, but growth prospects around the world are increasingly uneven. While confidence rose in Asia and the European Union and remained high in the United States, the indices for Latin America and non-EU Europe both tumbled to 52.4, their lowest levels since the YPO survey began.
Key findings
Confidence levels converge across region: The first quarter saw confidence levels even out across the major European economies, as many countries that had experienced extremely fragile levels of confidence over the past few quarters bounced back. Greece climbed 8.1 points to 58.8, and Italy climbed 5.3 points to 61.6. Germany gained 2.6 points, landing at 60.8, its highest level since the final quarter of 2010.
In contrast, with its forthcoming national elections in the balance, confidence in the United Kingdom remained almost unchanged, edging up by just 0.1 point to 68.7, still in firmly optimistic territory.
French CEOs optimistic about immediate outlook: Business leaders in France reported increased confidence about the immediate future. Half of respondents expected business and economic conditions affecting their organisations to improve in the next six months, whilst only 7% predicted that conditions would worsen.
YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of April, gathered answers from 2,211 chief executive officers across the globe. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world.
About YPO
YPO (Young Presidents’ Organization) is a not-for-profit, global network of young chief executives connected through the shared mission of becoming Better Leaders Through Education and Idea ExchangeTM. Founded in 1950, YPO today provides 22,000 peers and their families in more than 125 countries with access to unique experiences, extraordinary educational resources, access to alliances with leading institutions, and participation in specialised networks to support their business, community and personal leadership. Altogether, YPO member-run companies employ more than 15 million people around the world and generate US$6 trillion in annual revenues. For more information, visit www.ypo.org.
