U.S. Executives, Employees Pessimistic on Economy, Studies Find

Sixty-one percent of U.S. executives surveyed by McKinsey Quarterly agreed that financial reform was essential to economic stability. Two-thirds of executives in the United States and other countries said a “global regulatory framework” would prevent a global economic crisis, and while over 70% of executives said government regulation of the global financial services industry is important, 83% expect it to happen.

While the survey found a general consensus among respondents that regulation was an important part of a healthy economy, respondents were more critical regarding the law itself. Just 29% of U.S. executives said the law would have a positive effect on competition in the financial services industry. Forty-one percent of all respondents said they expected a positive effect on competition. Among large U.S. companies, 17% said they expected no change.

Among executives within the financial services industry, 38% said the law would improve competitiveness, compared with 49% of executives outside the industry.

The survey noted that pessimism has shifted to American executives; in the June survey, European executives were more pessimistic than other respondents. More than one-third of U.S. executives expect no change in the economy in the next six months; 15% expect it to get worse.

That pessimism carries over to employees, as well. In a survey of U.S. employees by Financial Finesse, a financial education firm, 78% of respondents reported feeling some level of financial stress in the second quarter. One-third reported high or overwhelming levels of stress.