When it comes to the global economic sentiment, we’re not all on the same page. The level of optimism for economic rebound over the next 6 months is interestingly fickle, varying by region and by industry.
Our experience here at Blue Ridge is that companies are freaking out — either because demand is extremely weak, or because it’s going haywire and they don’t know which end is up. There’s nothing in between.
McKinsey & Company has been putting out monthly surveys throughout this whole thing. In their latest survey conducted May 4-8, they reported that:
- In Greater China (April and May), 75% expect conditions to improve in the next six months, up from 63% previously
- But only half of that share – just 34% – say the same in Europe
- That figure in North America is 48%
- Over the last month, India reports the largest shift toward positive sentiment
Managing the Next Normal
One thing we are all on the same page about is, “That’s gonna leave a mark!”
Looking into “the next normal,” the data found that weak consumer demand is the biggest threat to companies’ growth over the next 12 months for the industries surveyed, especially in:
- Pharma & medical products (23%)
- Chemicals (46%),
- Consumer and packaged goods (48%), and
- Automotive (52%)
Supply chain disruption was a close second for biggest potential risks.
Learn what distributors in every industry are doing to build resilience for future supply chain disruptions: