Glimmer of hope for investment in Europe: EY survey

FILE PHOTO: The skyline with its monetary district is photographed throughout sundown because the unfold of the coronavirus illness (COVID-19) continues in Frankfurt, Germany, November 1, 2020, REUTERS/Kai Pfaffenbach

LONDON (Reuters) – International executives see a smaller hit to their funding plans for Europe than they did earlier this yr and are considerably extra upbeat concerning the continents future attraction, a questionnaire by skilled companies group EY discovered.

The survey, performed in October earlier than a sequence of COVID-19 vaccine trial breakthroughs, confirmed that 42% of executives now anticipate a lower of their 2020 funding plans and 31% plan to delay them to 2021.

That in contrast with 66% who anticipated decreases and 23% who noticed delays when requested the identical query again in April. This time round, a small quantity – 10% – even noticed a rise to their 2020 investments, one thing nobody did in April.

Whereas that also means an enormous total hit to overseas direct funding after 2019s report yr, EY famous that 21% of these surveyed believed Europe could be extra enticing for funding post-Covid in comparison with simply 8% in April.

It’s promising that traders consider that over the following three years, Europe will turn out to be a way more enticing vacation spot for investments than earlier than pandemic, EY Space Managing Accomplice Julie Teigland mentioned.

The findings had been primarily based on interviews with 109 international executives throughout 14 industries in October.

Upbeat information from vaccine trials are beginning to assist financial sentiment. The month-to-month eurozone Buy Managers Index (PMI) for November noticed an increase in its future output element in November to its highest degree since February.

Among the many different takeaways from the EY survey, 63% anticipated sooner roll-out of digital buyer entry to surveys within the subsequent three years (versus 55% in April) however solely 37% now noticed a reversal of globalisation (versus 56%).

Reporting by Mark John, modifying by Ed Osmond

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