A special survey by BDI-Coface and the Aviv group finds that 56% of CEOs see a medium likelihood of a slowdown in the offing. The survey also found that 23%, nearly one-quarter, of companies are planning layoffs.
51% of companies' boards have discussed the pending recession. BDI-Coface says that 63% of the 17% of the boards that believe that a recession is probable have discussed the issue.
BDI-Coface general manager Tehila Tamir-Yanay said, "Worries about a recession among Israeli managers (56%) conform to a number of other indications of a recession in the world (and in Israel), including rising prices, the credit crunch, lower demand in the US, the appreciation of currencies outside the dollar bloc, and intensifying competition.
"Data we've seen for the first quarter shows a severe decline in the payments ethic of companies in the world, expressed, among other things in a 45% increase in arrears and cases of financial distress at companies."
BDI-Coface adds that most managers do not consider the recession to be an opportunity. 33% of companies are amending their investment plans for the coming year: 7% are postponing planned investments until 2009 and 26% will partly postpone their investment plans. 67% of companies plan no changes in their investment plans.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2008
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