The indexes are calculated by subtracting the percentage of respondents expecting decreases from those expecting increases. The current surveys use similar sampling and interviewing procedures in all countries. The survey measures expectations in selected economies in North America, Asia and Europe, and in Brazil and Hungary. Unless otherwise noted, the increases and decreases in indexes represent changes from the previous quarter. Executives surveyed on the economic outlook for Hong Kong were the most pessimistic.
Executives also predict the New Zealand economy to be somewhat sluggish through the end of the year.
The New Zealand Net Profits Index fell 19 points, to minus 4 and the Employment Levels Index sank 16 points, to minus 15. Employment levels in Taiwan are expected to remain the same, with the index steady at 13, but the other four Taiwan indexes are entrenched in the negative range, as are all five indexes in Japan. Selling Prices, International Survey of Business Expectations Despite Pending Euro Currency Roll-out, Executives Predict Sales, Profits, Selling Prices, and Employment Levels to Diminish for European Region European executives surveyed predict growth levels to retreat through the end of 1998, with Germany a marked exception. The Inventories Index, however, advanced three points, to 4. The North American region reflected modestly lowered expectation levels, but remained robust despite the continuing international economic slump.