Executive confidence remained subdued this quarter, reflecting the softening pace of global economic growth. CEB’s business executives sentiment index (BESI) inched down from 46.7 in Q1 2012 to 46.4 in Q2 2012. This reading reflects continued cost pressure concerns, which outweighed improved growth outlook. The outlook for new orders improved again with 66% of operations executives now expecting an increase (up from 60% in Q1 2012). In addition, 61% of respondents expect higher production levels in the next 12 months (versus 57% last quarter).
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