In the latest McKinsey global survey in economic terms, respondents’ expectations for their companies’ performance are gloomier than they have been since the start of the COVID-19 pandemic. This pessimism comes as companies feel the impact of rising costs. Nine out of ten respondents report cost increases in the past six months, particularly the effects of rising energy prices and material costs. However, respondents in sectors such as energy and materials and financial services indicate more positive points compared to the June 2022 survey.

Benefits: The responses reveal continued pessimism about the company’s future growth. Just over half of respondents expect profits to rise, down from 65 percent six months ago. Although in most industries, profit expectations have turned less positive since December 2021, respondents working in the energy and materials sector have a more optimistic view of their profits in the next six months than last quarter.

Customer demand: Overall, only 51 percent of respondents expect demand for their companies’ goods or services to increase in the next six months, the smallest percentage since July 2020. Although respondents in consumer goods and retail retail and technology, media and telecommunications are much more pessimistic about it. demand that since mid-2020, respondents in financial services and advanced industries are more hopeful now than in the previous survey.

Workforce Size: Almost four in ten respondents expect the size of their companies’ workforce to increase in the coming months. While respondents’ expectations for hiring in many industries remain mostly in line with the previous quarter, financial services respondents are much more likely now than in June to expect their employers to increase their headcount.

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