Economic Challenges Facing Global and Domestic Business
Economic challenges facing UK business
Ipsos MORI SURVEY – NOVEMBER 2011
Methodology 122 structured telephone interviews of approximately 15 minutes conducted between 6th October and 4th November 2011
Survey sample
Sample by sector
Manufacturing
Where is the location of your head office?
15%
22%
Construction Financial services
15% 9% 15%
34%
UK
Retail, transport & distribution Non-financial services Other
66%
Outside the UK
24%
Sample by global revenue
50
40 30 20 10
Apart from the UK, how many other countries do you operate in?
14%
None
35% 21%
1-10 11-20 21-50 Over 50
23%
0 < £100m £500m-1bn £1-5bn > £5bn
7%
Business confidence has deteriorated sharply
How has your level of confidence in the economic outlook changed since August?
40
Eurozone crisis
Reasons for fall in confidence
0 10 20 30 40 50 60
20
Consumer demand Slow growth
0 Deteriorated -20
Global economic conditions Instability in financial markets Sovereign debt crises Negative media coverage Reduced flow of work Poor government strategy
Stayed the same Improved
-40
-60
Length of downturn Sluggish recovery in the US
-80
Level of unemployment
-100
“The euro crisis is definitely damaging confidence in many ways”
Eurozone and banking crisis concerns are weighing on confidence
Factors expected to influence the economy in 2012
No influence 0 Eurozone sovereign debt crisis Further banking crisis 20 Moderate influence 40 Strong influence 60 80 100
Rising commodity prices
Currency volatility
Lack of growth in the US
Chinese growth levels Protectionism and trade friction Stability in the Middle East
Main risks to business stem from financial instability and lack of domestic demand
Risks to business over the next 12 months
Minimal/no risk
0 Financial market volatility/weakness Lack of domestic demand Rising costs Availability of finance Under investment Domestic competition
Ipsos MORI SURVEY – NOVEMBER 2011
Methodology 122 structured telephone interviews of approximately 15 minutes conducted between 6th October and 4th November 2011
Survey sample
Sample by sector
Manufacturing
Where is the location of your head office?
15%
22%
Construction Financial services
15% 9% 15%
34%
UK
Retail, transport & distribution Non-financial services Other
66%
Outside the UK
24%
Sample by global revenue
50
40 30 20 10
Apart from the UK, how many other countries do you operate in?
14%
None
35% 21%
1-10 11-20 21-50 Over 50
23%
0 < £100m £500m-1bn £1-5bn > £5bn
7%
Business confidence has deteriorated sharply
How has your level of confidence in the economic outlook changed since August?
40
Eurozone crisis
Reasons for fall in confidence
0 10 20 30 40 50 60
20
Consumer demand Slow growth
0 Deteriorated -20
Global economic conditions Instability in financial markets Sovereign debt crises Negative media coverage Reduced flow of work Poor government strategy
Stayed the same Improved
-40
-60
Length of downturn Sluggish recovery in the US
-80
Level of unemployment
-100
“The euro crisis is definitely damaging confidence in many ways”
Eurozone and banking crisis concerns are weighing on confidence
Factors expected to influence the economy in 2012
No influence 0 Eurozone sovereign debt crisis Further banking crisis 20 Moderate influence 40 Strong influence 60 80 100
Rising commodity prices
Currency volatility
Lack of growth in the US
Chinese growth levels Protectionism and trade friction Stability in the Middle East
Main risks to business stem from financial instability and lack of domestic demand
Risks to business over the next 12 months
Minimal/no risk
0 Financial market volatility/weakness Lack of domestic demand Rising costs Availability of finance Under investment Domestic competition