Less Upbeat on Sales Prospects

28 11 2007


According to the latest survey, overall business activity rose in September 2007. The CEOs surveyed claimed a higher growth of sales. As a result, corporate profitability in many industries improved as well. Looking ahead, however, the CEOs are less optimistic. They expect slower sales growth over the next six months. Nevertheless, they still believe that profits will grow steadily – hence their plans to increase investment expenditure in the near future.

Overall, Current Sales and Profits Improved. According to the September 2007 survey, the CEOs of Construction, Financial, and Services companies claimed a lower growth of sales. However, almost all other companies claimed a higher growth of sales in the months under survey. As such, overall, sales in the companies surveyed grew at a higher rate than before (the relevant index rose by 6.6% to 131.7). Thus, with stronger sales, the CEOs surveyed claimed better profitability. In particular, our survey reveals that the manufacturing sector recorded good performance in September with profits growing firmly. Overall, across all sectors, the present profits index rose by 2.8% to 113.0. Read the rest of this entry »