Bosses more confident than 2016

The accountancy giant’s 20th annual CEO Survey published at the World Economic Forum in Davos showed 89 per cent UK CEOs say they are confident of their company’s growth in the year ahead, up from 85 per cent in 2016.

This is significantly ahead of the 85 per cent global figure and 77 per cent in Germany.

Forty one percent of UK CEOs describe themselves as being ‘very confident’, eight percentage points higher than last year.

The bullishness of UK CEOs is not just in their short term outlook. 95 per cent are confident about their business’s growth prospects over the next three years.

However the optimism does not stretch the economy at large, with just 17 per cent expecting global economic growth to improve this year and nearly a third of UK CEOs expecting the global economy to decline in the year ahead.

The figures also showed that chief executives in the US, China, Germany and Switzerland among those more enthusiastic about investing in the UK.

Ian Morrison, PwC’s Yorkshire & North East regional leader, said: “Despite an eventful 2016, it’s encouraging to see growth firmly on the agenda of UK plc.

“We may face a period of uncertainty, but the economic fundamentals remain positive and businesses should keep calm and carry on doing what they do best – capitalising on the UK’s strengths and attractiveness to the rest of the world, and seeking out new opportunities. CEOs across Yorkshire and the wider UK are resilient and realistic about the challenges ahead - maintaining a positive mindset and staying focused on what they can control is vital.”

Eighty four percent of UK chief executives rank uncertain economic growth as the top environmental threat to company growth, compared to 82 per cent globally).

The survey of more than 1,300 global leaders, including 126 UK CEOs, reveals the UK is rising in popularity with overseas companies.

Mr Morrison said: “In the tech talent race, UK organisations must be viewed as leading the way in emerging technology development. It is vital that we are able to attract businesses and people with the right tech skills, and also develop the requisite skills internally. With the current pace of technological change it is hard to predict what jobs will look like in the future, so as well as developing digital skills it is important that employees are adaptive and able to respond to the next skills challenge. Those that can will be in high demand.

“Emerging technology development will require diverse thinking to ensure the fourth industrial revolution is representative of the population and doesn’t leave anybody behind as we reshape our economy.”

More generally, UK bosses are in hiring mode. Sixty three percent expect to grow their workforce over the coming 12 months, compared to 52% of their global counterparts. Just 10 per cent expect headcount to decrease, down from 20 per cent in 2016.

Access to key skills is considered to be the single biggest business threat facing their organisations. More than four in five of UK bosses are concerned about how to get hold of key skills, up sharply from 71 per cent last year, and compared to 77 per cent globally.