EU business 'more upbeat than US'

http://news.bbc.co.uk/go/rss/-/1/hi/business/6247601.stm

Version 0 of 1.

Business confidence in the European Union has overtaken that in the US, an international report suggests.

Growing optimism in Germany and France helped lift confidence across the EU, according to Grant Thornton's latest International Business Report.

Asia saw the highest levels of optimism among business leaders, with India topping the table.

The survey covers the opinions of 7,200 bosses in 32 countries, representing 81% of global economic output.

US problems

MOST OPTIMISTIC NATIONS India +97%Philippines +88%China +85Singapore +84%Ireland +82%

Business confidence in the EU stood at a balance of +46%, according to the report, well above the US balance of +14%.

India was the nation most optimistic about its business prospects, topping the table with +97%, followed by the Philippines, China and Singapore.

Japan was the least upbeat, with its balance of optimism versus pessimism rating standing at -5%.

Optimism among British business leaders surveyed was two percentage points behind the global average of +45%.

LEAST OPTIMISTIC NATIONS Japan -5%Taiwan -3%Turkey 0%US +14%Italy +21%

Overall, 29 of the 32 countries surveyed were optimistic about their economic performance in 2007, although Turkey saw a sharp drop in confidence from +58 in 2006 to zero in the current year, reflecting frustrations with the country's negotiations to join the EU.

"The rise in EU confidence is drawn both from the economic growth in the past year and economic reforms, particularly in Germany and Italy," said Alex MacBeath, director of privately held business services for Grant Thornton.

"In comparison, the US has faced a period of slowing economic growth and political instability."

He added: "For the first time in five years the findings of our survey don't appear to be influenced by extraordinary global events such as terrorism, natural disasters or potential health scares."