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Home  Home »  Industry News »  English » 

UK AND ITALY LEAD RESURGENCE IN CONFIDENCE ACROSS EUROZONE


Author:Chloe Ji Translate      Updated:2009-08-10      Views:

Business confidence is surging across European manufacturing, with the UK and Italy taking the lead, according to reports today that also highlight the turnround in countries such as Brazil and China.

Optimism about production trends is back at levels seen before the intensification of the global slowdown late last year, and points to a clear growth in manufacturing activity by the middle of 2010, the latest KPMG business outlook survey shows. The results are the latest evidence of a synchronised global rebound, possibly at a faster pace than expected until recently.

The European Central Bank last week turned more optimistic about eurozone and global prospects, although the Bank of England was more pessimistic, warning that the UK recession appeared to have been “deeper than previously thought”.

Gross domestic product figures for the 16-country eurozone this week are expected to show the pace of economic contraction slowed markedly in the second quarter.

The KPMG survey of 3,700 European Union manufacturers monitors trends in activity by deducting the percentage of companies forecasting a decline in the next year from the percentage expecting a rise. The results showed a swing from a “net balance” of minus 10.2 in January to positive 28 in July C the highest since January 2008. The strongest readings were in the UK at 53.8, and Italy at 48.9.

Brazil, Russia, India and China C the Brics C have also seen a rebound in manufacturing confidence, a separate KPMG survey said, covering 1,800 companies in the region. The “net balance” expecting a rise in activity over the next year rose from 3.6 in January to 46.5 in July. Confidence was highest in Brazil.

 


(Editor:translation)      


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