Profit expectations improve at year end, McKinsey finds

Most executives expect profits to improve over the next six months, according to research by a leading global management consultancy.

McKinsey’s latest Economic Conditions Snapshot shows 56% of executives anticipate corporate profits rising in the coming six months. This compares with 45% expecting this in September.

Just 22% think profits will decline in the opening half of 2012, falling from 26% in the previous survey.

“Although more executives are worried about low consumer demand than any other threat to economic growth, a bigger share now also expect demand for their companies’ products or services to increase over the next six months than they did in September,” the consultancy says.

Despite this, the number of companies delaying capital investment or mergers and acquisitions has increased since the summer. McKinsey suggests this is due to executives waiting to see how the eurozone debt crisis plays out.

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