TORONTO, Nov. 01, 2016 (GLOBE NEWSWIRE) -- YPO , the premier chief executive leadership organization in the world, announced today that economic confidence amongst chief executives in Canada fell during the third quarter. The YPO Global Pulse Confidence Index for Canada declined 3.1 points from 59.9 to 56.8, following a significant increase in confidence in the first half of 2016.
http://www.globenewswire.com/NewsRoom/Attachm...4008963199 .
Following slower than anticipated GDP growth, rising unemployment and continued challenges in the country's oil sector, chief executives in Canada reported lower levels of confidence in each of the three main indices of the YPO Global Pulse Index: sales, hiring and fixed investment.
The YPO Sales Index for Canada fell by 4.3 points, from 66.1 to 61.8, whilst the Employee Index fell 2.6 points to 54.7, and the Fixed Investment Index dropped 2.7 points to 57.0.
"It's no surprise that the outlook among Canadian business leaders has become more cautious over the past few months, given the slowdown in the economic recovery and poor employment figures," said Trevor Chisolm, YPO Canada Regional Chair. "Business leaders in Canada will keep a very close eye on key economic indicators, both within Canada and around the world."
Globally, the YPO Global Pulse Index for the third quarter of 2016 remained relatively stable falling by only a half a point to 59.2. The highest levels of confidence were reported in the European Union, which climbed 2.2 points to 60.7. Close behind was the United States, where confidence remained stable in the third quarter, edging down just 0.4 point from 60.8 to 60.4. Asia fell 2.9 points to land at 60.0, as the world's three largest economic regions reported confidence levels within one point of each other. Elsewhere, confidence in Latin America increased by 1.5 points to 55.9, whilst confidence in the Middle East and North Africa fell 2.0 points to 53.9, making it the most pessimistic region in the world. Africa reported a more positive outlook, climbing 1.7 points to 55.5, its highest level since July 2015.
Key findings in Canada
Economic conditions expected to remain challenging When YPO chief executives were asked whether they thought economic conditions would improve over the next six months, almost half (45%) of the respondents believed there would be little change in the economic climate. More than a third (38%) felt conditions would improve and 17% expected the economic situation to get worse. This reflects a more pessimistic outlook than the previous quarter, when 43% expected economic conditions to improve, 43% believed they would remain the same, and 14% predicted deterioration in conditions.
Most chief executives are still positive about prospects for their own organizations Despite concerns about the general economic climate, business leaders in Canada remained relatively upbeat about the immediate outlook for their own organizations. The majority of respondents (58%) forecasted increased revenues over the next 12 months, with only 8% predicting a decline.
Almost a third (31%) expected to increase staff numbers in the next year, whilst only 9% forecasted a reduction in headcount.
More than a third (35%) predicted greater levels of fixed investment, compared with 16% who expected to cut investment in the next year.
YPO Global Pulse Confidence Index The quarterly electronic survey, conducted in the first two weeks of October 2016, gathered answers from 1,625 YPO chief executive officers across the globe, including 93 in Canada. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world.
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Contact: YPO Linda Fisk Office: +1 972 629 7305 (United States) Mobile: +1 972 207 4298 press@ypo.org
