Economic conditions outlook, September 2024

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Executives are less optimistic about current economic conditions compared to earlier in the year, but there is cautious optimism for the upcoming months [2][3] - Geopolitical instability is viewed as the primary risk to both global and domestic growth, with political transitions also being a significant concern [4][9] - Expectations for company performance remain stable, with about half of respondents anticipating an increase in customer demand and 58% expecting profits to rise [19] Economic Conditions Overview - For the first time since March 2020, a majority of executives perceive the global economy as stable rather than improving, with a notable increase in those reporting no change in conditions [3][5] - The share of respondents expecting improvement in the global economy over the next six months is 42%, while 47% expect improvement in their own countries' economies [8] - Concerns about inflation have shifted, with it now being the fifth most-cited global risk, while it remains a primary concern in developing markets [12] Risks to Growth - Geopolitical instability and political transitions are the top cited risks for both global and domestic growth, with 65% of respondents identifying geopolitical instability as a major concern [11][15] - Rising inequality and extreme weather events are increasingly recognized as long-term risks, particularly in Asia-Pacific and India [15][17] Company Performance and Workforce Expectations - Private sector respondents show muted expectations for workforce growth, with an equal likelihood of expecting an increase or decrease in workforce size [19][20] - Industries such as consumer goods, retail, and healthcare are more likely to anticipate a decrease in headcount compared to previous quarters [19]