Senior executives “nervous” over market recovery, E&Y study claims

Senior professionals at many of the biggest global businesses are nervous about the market recovery despite improvements seen in business conditions during the last 12 months, a report has claimed.

Findings from a study by Ernst&Young (E&Y) showed that 34 per cent of respondents are looking to pursue business opportunities in 2010 compared with 19 per cent in January of last year.

However, as many as 53 per cent of the organisations questioned said that remaining in business during 2010 will be a challenge.

John Murphy, global managing partner of markets at E&Y, said: "The spirit of optimism has increased, but it is essentially fragile in nature. A pick up in confidence is not surprising, given the massive global government stimulus working its way through the economy and the larger developing and emerging economies beginning to rebound.”

“Companies may be less worried about survival over the next 12 months, but the return to a healthy operating environment is still some way off," he added.

Further findings from the report showed that three-quarters of the businesses questioned were planning on saving money by improving efficiency.

Changing their business model by restructuring and introducing new products to the market were deemed as other ways in which business longevity could be achieved.

The survey questioned more than 900 senior executives at major worldwide companies.

By Jim Ottewill