Marking a significant improvement in their attitudes, a higher percentage of global executives feel the economy is recovering and 71 per cent think the stock market will continue to improve in the second half of 2009.
According to results of an Executive Quiz released by global talent management service provider the Korn/Ferry Institute, as much as 40 per cent of respondents said the word "recovering" best described the state of the global economy.
The percentage of executives saying so has increased 67.5 per cent over the past six months, compared with mere a 13 per cent in March.
Moreover, an overwhelming majority of executives (71 per cent) felt that performance of stocks would continue to improve through the second half of 2009 as well, the report stated.
However, the report added that majority of executives feel the labour market would lag the financial markets in regaining strength. "Global executives rank labour market data as the most accurate economic indicator."
Despite the optimism about recovery, almost 60 per cent of the executives describe overall economic state negatively. About 39 per cent categorise it as a 'severe recession' , while 4 per cent call it a 'depression.'
However, these numbers are significantly lower than March data, when 'severe recession' accounted for two-thirds of responses and 'depression' tallied six per cent.
The survey also said the prospects for a labour market recovery seem to be trailing the financial markets.
"We often find that labour demand lags financial markets when coming out of a recession," Korn/Ferry International president (Asia Pacific) Charles Tseng said.
While about 29 per cent of the executives surveyed said the trough would come in fourth quarter of this year, 37 per cent believe it would be sometime in 2010, while seven per cent feel it will be after 2010. Just 27 per cent said that we are currently experiencing the bottom of the labour demand, the survey added.
" ...Cautious hiring is an indicator of economic recovery. We should expect slow and steady improvement in the labour markets, not the rapid upswing like we have seen in the financial markets," Tseng added.
