Investor confidence in global economic recovery dips, new survey reveals

16 June 2010

Confidence among investors that the economy will improve over the next 12 months has fallen, a new report has shown.

Findings from a study by Bank of America (BofA) Merrill Lynch revealed that 24 per cent of fund managers questioned during June thought that the global economy would improve.

The figure was lower than the 42 per cent in May and 61 per cent in April who predicted that the global economy would strengthen.

BofA’s report revealed that the proportion of investors anticipating a rise in corporate profits during the next 12 months also fell to 28 per cent from 67 per cent seen in April.

Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Global Research, said: “Global growth expectations have 'double-dipped' and positioning is more defensive but investors show little sign of panic.”

Further statistics from the report predicted a more positive outlook for the eurozone, with 19 per cent stating that the value would appreciate over the course of the next 12 months.

The figure was up from the seven per cent who had shared the same view during the previous month.

More than 200 fund managers with combined assets under management of $606 billion participated in the study.

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