13 November 2007 | Paul Snell
Service providers in emerging economies are more confident about winning business in the future than their European counterparts.
According to two surveys published today by professional services firm KPMG, 70 per cent of suppliers in the BRIC (Brazil, Russia, China and India) group of countries believe their amount of work will increase next year, with only 4 per cent expecting a fall.
The KPMG studies rank future optimism between -100 and +100. In the BRIC countries confidence was rated at +65.7.
However, there was a sharp decline in the optimism of European firms, down from +46.6 in April to +35. KPMG said firms are worried about a potential global economic downturn and are already suffering high cost rises. Some 56 per cent of European firms expect costs to go up, driven by the rising price of oil and fuel.
Brazilian companies are the most optimistic of those from BRIC nations, with 80 per cent of respondents predicting work to increase. Chinese firms are the least positive, with 63 per cent of service suppliers predicting growth.
Ian Gomes, chairman of KPMG's new and emerging markets group, said in a statement: "The findings certainly come as no surprise; the BRIC countries are all growing strongly with increased corporate profitability."
The studies surveyed 1,400 firms from BRIC and 2,800 in Europe.