Finance executives remain wary about the outlook for both U.S. and global economic growth, in line with the views they expressed late last year, according to Treasury & Risk’s biannual economic survey. When it comes to scoping out the barriers to growth, the state of the job market remains executives’ biggest concern, with fewer respondents citing the European debt crisis and the state of the U.S. housing market as problems than in the previous survey.
More than a quarter (27%) of the executives expect a country or countries to exit the eurozone in the next six months, while a third (34%) say the European debt crisis has affected their company’s plans for the coming year.
Asked to describe the U.S. economy over the next six months, more than half (52.4%) of the executives said it was “on a downward trend” or “affected by as many negatives as positives,” up from the 44% who picked those descriptions late last year. And more than three-quarters (78.9%) picked the two most negative descriptions for the global economy.
The finance executives surveyed see the sluggish employment market as the biggest barrier to growth, with 34% citing the jobs market, up from 32% late last year. Another 12% cited weak consumer spending, arguably an offshoot of the sluggish jobs market.
The majority of executives see the Federal Reserve holding rates steady over the next 12 months.
Looking ahead, fewer companies plan to reduce the size of their workforce than was the case late last year, but the portion planning to add workers was unchanged at 29%.