Davos Notebook

Tigger bounces back in the boardroom

PWC_chart for blogCEOs are, of course, ebullient by nature.

So it’s no surprise that confidence about growth prospects is bouncing back as emerging markets continue to barrel along and even sluggish developed economies show signs of recovery.

What is, perhaps, remarkable is just how far confidence has returned. The latest survey of 1,201 company bosses by PricewaterhouseCoopers shows it is back almost to pre-crisis levels.

But how much should we trust the bouncing boardroom Tiggers? There are also plenty of Eeyores in Davos, warning about fiscal deficits, growing economic imbalances and the rising threat from inflation.

Bouncing back

Figure 0.1

Being bullish is, of course, part of the job if you are a CEO.

But sentiment really is improving. The annual PricewaterhouseCoopers survey of 1,200 industry bosses from 52 countries shows a nice pick in in the short- and long-term confidence curves, with 31 percent of those questioned now “very confident” about revenue prospects for the next 12 months and 81 percent plain-vanilla confident.

More remarkable, perhaps, confidence about sales looking out 3 years is now back up around its historic highs.