(DALLAS – April 11, 2012) – Confidence among U.S. businesses has bounced back 15 Index points (a 17 percent increase) to 105 since September, inverting the decline recorded between March and September 2011, according to the global Regus Business Confidence Index. A further mark of optimism is that companies reporting revenue growth increased, reaching 48 percent compared to 40 percent six months ago. Companies reporting profit growth (40 percent) also increased 6 percent. Mindful of the need to contain costs in the quest for sustainable growth, businesses identify more use of pay-as-you-go business services, increasing use of cloud computing and introducing more flexible workspace as the most effective cost cutting measures for the coming months.
- Looking back, U.S. firms identified difficult access to cost effective capital (58 percent) as the main reason for corporate distress during the downturn followed by making permanent staff redundant (48 percent);
- Respondents identified more use of pay-as-you-go business services (44 percent), an increasing use of IT cloud application (44 percent) and reducing fixed workspace (42 percent) as the areas where companies could best make savings without damaging growth prospects;
- US firms report that improved access to capital (43 percent) and a wider distribution of customers (43 percent) would make the greatest contribution to enhancing future business stability as a platform for growth;
- The Business Confidence Index rating is lower for small businesses (98) than for large firms (120).
“Finally, after a significant setback between March and September 2011, business confidence is beginning to grow again,” says Guillermo Rotman, CEO Americas for Regus. “In addition to this, the proportion of companies reporting revenue and profit growth has started to increase. In spite of this better outlook businesses globally are still looking to cut overheads without damaging their growth prospects.”
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The Regus Business Confidence Index
In every edition, the Regus Business Tracker report presents an updated Business Confidence Index. This index is a measurement formed on an aggregate of positive and forward-looking statements combining year-to-date revenue and profit trends with views on the expected economic upturn in the coming months and aims to provide businesses with a single point of reference of the survey’s key findings. Its benchmark average was set at 100 in the first edition of the Regus Business tracker in September 2009.
Regus is the world’s largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios. Regus enables people to work their way, whether it’s from home, on the road or from an office. Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities.
Over 1,000,000 customers a day benefit from Regus facilities spread across a global footprint of 1,200 locations in 550 cities and 95 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit: www.regus.com