Macroeconomic conditions are the top concern for executives in the consumer markets and industrial products sectors, according to the latest PwC Pulse Survey. However, despite possible headwinds, they still feel confident.
More than 8 in 10 consumer markets execs think a recession will occur in the next six months. After macroeconomic conditions, they’re most concerned about a decline in purchasing power and more frequent and/or broader cyber attacks.
To address the economic conditions, execs plan to cut costs, make acquisitions or divestitures, and hire to drive growth in specific areas. On the bright side, 81% are confident that their companies will still be able to make progress on environmental issues.
After macroeconomic conditions, industrial products execs are most concerned about more frequent and/or broader cyber attacks and the Federal Reserve’s tightening cycle.
PwC notes that “U.S. industrial production has been holding its own,” even with increasing interest rates and inflation. More than three-quarters (78%) of execs are mostly or completely confident in achieving their near-term growth goals. They are also confident about their ability to make acquisitions.
To address the economic conditions, execs plan to reduce the number of full-time employees, make changes to their strategic planning, and shift their products and services mix. More than one-quarter (28%) also plan to move business out of China.