According to a survey of business executives released Sunday, global business confidence slumped in the third quarter of 2014. A global survey conducted by Markit saw a net 28% expecting higher activity, down from 39% in June, to mark a five-year low.
In the U.S., hiring intentions fell to a new survey low, as did investment intentions. Markit said the U.S. business outlook survey, in particular, showed that a net 31.2% of executives saw growing activity for the next 12 months in October, down from a net 51.4% when they were surveyed in June. That is the lowest reading since the survey started in 2009.
Optimism in the eurozone was the weakest since June 2013, and Russian confidence also fell to a survey low.
“Clouds are gathering over the global economic outlook, presenting the darkest picture since the global financial crisis,” said Chris Williamson, chief economist of Markit. He also commented that U.S. growth may have peaked over the summer months.
Markit, which surveyed 6,100 companies, said concerns included a renewed downturn in the eurozone, rising interest rates in the U.S. and the U.K., geopolitical risk from Ukraine and the Middle East and growing political uncertainty in the U.S., Japan and other countries.
