Economic Conditions Snapshot, March 2009: McKinsey Global Survey Results


A gloomy economic stasis has taken hold, responses to a McKinsey Quarterly survey—in the field from March 10, 2009, through March 16, 2009—indicate. The percentage of the executives who say economic conditions have gotten worse at the national level hasn’t increased, but fewer than a third expect an upturn this year.

Executives overall are confident with how their companies are managing the crisis, though 53 percent expect profits to drop in the first half of 2009, and the number expecting to shed workers has jumped eight percentage points in six weeks. Companies that executives describe as well managed are likelier than others to be reducing both operating costs and capital spending—and perhaps not weakening operations a great deal, because these companies are also likelier than others to be improving productivity. Overall, the results show that most companies are not actively seeking more cash.

This survey also solicited executives’ views on some topics of intense public debate. Respondents think “bad banks” are a good idea, disagree on whether CEOs are paid too much, and overwhelmingly say the public trusts business less than it did before the crisis—and lay the blame at the doors of financial firms.

Click here to read more about this report.

2 responses to “Economic Conditions Snapshot, March 2009: McKinsey Global Survey Results

  1. I know any number of people who have been laid off. My husband is a municipal worker — no raise this year, because there’s no money. Sales tax revenues fund a lot of the city operations — no one’s buying anything, so there’s less sales tax revenue. It’s all hard to know whether it’s the banks’ fault, or the banking industry, or maybe the people in charge. I just know it’s really frustrating and I’m worried about MY job. (One advantage to being a public sector employee is that your job is fairly safe. The trade-off is salary.) In an effort to make sense of what’s been going on, I’ve found a great book for people like me who are just regular people: The 21st Century Economy – A Beginner’s Guide by Randy Charles Epping. I’m feeling like I can understand what’s going on — lots of good everyday examples. Why can’t economists explain this as simply as he does?

  2. Pingback: Topics about Go-greener » Blog Archive » Economic Conditions Snapshot, March 2009: McKinsey Global Survey…

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